Thursday, April 11, 2013

 Kingfisher revival: approval from AAI, creditors not sought
[Editor:  Why would KFA Ltd's authorities bother to meet the DGCA, when it is already dealing the case in an irresponsible manner? This gentleman of DGCA is putting one of most hilarious arguments of not paying Rs.300--400 Cr when the total debt on the books only a couple of weeks back was Rs.13, 582 Cr.  When a father is mistreating his child, is it wise for the child to go to the father again and get abused? So, it is logical that they have chosen an alternate route without violating the laws of the of the land.  In this direction,  Dr.Vijay Mallya,  already met the FM, to find out a possible solution, so that this distressed airlines can be resuscitated. Also, the government has some  form of moral responsibility to help start the airlines, considering the number of families connected with the airlines, who are passing through a very bad phase. Therefore,  let us wait for sometime before jumping into any conclusion. The company has already said that it would do the funding from the parent U B Group. So where is the problem? Indian Aviation Sector has structural problems, unless these are sorted out it would be difficult for any airlines to make consistent profits]
Grounded Kingfisher Airlines, which submitted a fresh revival plan to aviation regulator, the Directorate General of Civil Aviation, did not even bother to get in touch with the Airports Authority of India (AAI) let alone get a No-Objection Certificate (NoC) from the state-owned airport operator
to whom it owes close to Rs. 300 crore.

Meanwhile, Kingfisher chairman Vijay Mallya met finance minister P Chidambaram on Wednesday.

The regulator and the aviation ministry had made it clear to the airline when it had submitted its first revival plan in December last year that it needs to get NoCs from all stakeholders before its request to restart operations would be considered, said sources.

"The airline needs to obtain statements from creditors, including banks, airport operators and employees that they do not object to resumption of flights," aviation minister Ajit Singh had said on January 22. Singh had said that settlement of AAI's dues was "non-negotiable".

"We were hoping that this they would come prepared but they have failed to get NoC's from AAI, tax authorities and banks," a source said.

AAI chairman VP Aggarwal told HT that his organisation hadn't received any communication from Kingfisher at all. Aggarwal made it clear that Kingfisher would have to clear its dues first before AAI gave its consent. Kingfisher wants AAI to allow them to fly on cash-and-carry basis, said sources.

Kingfisher did not offer comments for the story.

Courtesy: Hindustan Times