DGCA suspends Kingfisher's flying permit

Last Updated: Sat, Oct 20, 2012 17:36 hrs

New Delhi, Oct 20 (IBNS) Aviation regulator Directorate General of Civil Aviation (DGCA) on Saturday suspended the flying licence of cash-strapped private carrier Kingfisher Airlines with immediate effect.

The DGCA suspended the flying license of the private carrier until it comes out with a revival plan.

"Director General Civil Aviation (DGCA) has suspended the Scheduled Operator's Permit of Kingfisher Airlines dated 26.08.2003 pursuant to Clause 15(2) of Schedule XI of the Aircraft rules 1937 read in conjunction with Para 10.21 of CAR Section 3, Series C Part II. The permit has been suspended with effect from 20th October, 2012 till such time the Kingfisher Airlines submits a concrete and reliable revival plan ensuring safe, reliable, efficient and sustainable Scheduled Air Transport Services to the satisfaction of DGCA," read a statement issued by the Ministry of Civil Aviation.

Pertinently, Kingfisher Airlines failed to come up with any reply to the showcause notice served on it by the DGCA.

"The DGCA decided to suspend the Airline's permit after examining the Airline's reply received on 19.10.2012 to the Show Cause Notice served on them by the DGCA dated 5.10. 2012 which was not found satisfactory," the ministry said.

"DGCA has observed that the Kingfisher Airlines have not addressed any of the issues raised by the DGCA during the meeting held with the Airline on 02.10.2012 and the points raised in the show cause notice.

"They were asked to submit their operational preparedness plan for resumption of flight operations. Instead, they have sought more time to file a reply to the show cause notice not indicating any time frame for submitting the detailed response; therefore, the request could not be acceded to by the DGCA," said the ministry.

The DGCA had issued a show cause notice to the Kingfisher Airlines, to be replied within 15 days (Saturday), asking why its permit should not be cancelled or suspended under the provisions of Section 15(2)(b) of Schedule XI of the Aircraft Rules 1937 as the airline has failed to establish a safe, efficient and reliable service.

The airline on Friday extended its partial lockout till Oct 23.

"Kingfisher Airlines Ltd. has extended the partial lockout until October 23, 2012," said Prakash Mirpuri, Vice President - Corporate Communications, Kingfisher Airlines Limited in a statement.

He said the authorities will meet striking employees next week again to find a solution to the ongoing deadlock.

"We had a positive meeting with employee representatives on October 17th and are hopeful of reaching common ground when we meet again next week," said Mirpuri.

He said the flight operations are likely to resume on Nov 6.

"Currently, we anticipate resuming operations on November 6th, subject to our resumption plan being reviewed and approved by the DGCA," he said.

The operations of the private carrier are under suspension since Sept 30 due to strike by its employees.

The employees of the Kingfisher Airlines have often been striking time and again over the issue of non-payment of salaries this year.

Kingfisher reported a loss of Rs. 1,151.50 crore in the March quarter.

It has a debt of over Rs. 7,500 crore and accumulated losses which is almost equal.

Kingfisher Airlines controlled by liquor baron Vijay Mallya has neither been able to pay salaries regularly since February nor has it managed to pay its dues to oil companies and airports, media reports said.

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