Suspension of Kingfisher licence on cards: officials

October 19, 2012

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New Delhi, October 19: Suspension of licence stares in the face of crisis-ridden Kingfisher Airline as it extended its lockout till October 23 and submitted a reply to aviation regulator DGCA's show-cause notice on the matter.

Reacting to the airline's reply, official sources said the Directorate General of Civil Aviation (DGCA) was consulting legal experts on what action -- suspension or cancellation of flying licence -- could be taken against Kingfisher for failing to resolve the 21-day impasse with its employees over non-payment of seven-month salary dues and resuming operations.

"We will take a view on this very soon... probably within a couple of days," a source said, replying in affirmative when asked whether suspension was on the cards.

Among the options could be suspension of flying licence or give them some more time.

The DGCA had issued show-cause notice on October 5, to the liquor baron Vijay Mallya-owned airline asking why its flying licence should not be suspended or cancelled as it was not adhering to its flight schedule and "abruptly cancelling its flights time and again during the last 10 months", causing great inconvenience to the travelling public.

The DGCA had given the airline a 15-day time to reply to its notice, which was to expire tomorrow.

Later the airline issued a statement saying it had "extended the partial lockout until October 23, 2012. We had a positive meeting with employee representatives on October 17 and are hopeful of reaching common ground when we meet again next week.

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

The official sources made it clear that Kingfisher could not resume operations till the DGCA gave the final clearance.

The beleaguered carrier did not mention extension of the lockout in their "open-ended" reply to DGCA, they said, adding that the airline, in its letter, sought more time to prepare a response to the DGCA notice but did not give any deadline.

Kingfisher was issued an airline licence on August 26, 2003. It was actually issued to Air Deccan which was bought over by Kingfisher. It is valid till December 31 this year.

Suspension of flying licence, which is generally until further orders, would entail immediate halt to all bookings on the entire Kingfisher network as well as through travel agents, the sources said.

Whenever the airline approaches DGCA that they were ready to resume operations, the regulator would satisfy itself that the airline was fully prepared to fly, including preparedness of the staff to operate flights, the airline's capacity to pay for the operations and all safety measures.

In case of cancellation of the licence, the airline would have to start afresh, apply to the ministry for a licence and complete the entire long-drawn official, legal and technical processes and get all regulatory approvals.

In its reply, the airline blamed industrial unrest for not being able to operate its flights. It also claimed its good safety record and on-time performance over the years and welcomed government's decision to allow foreign airlines to pick up stake in Indian carriers.

In the final paragraph, Kingfisher's Executive Vice President Hitesh Patel said the company needed more time to give a proper reply to the DGCA show-cause notice and sought permission to appear in person to respond to other queries by the regulator. But it did not give any time-line.

The sources said Kingfisher was on cash and carry by most service providers and the government did not want a situation where the airline re-starts operations and then keeps flying in fits and starts, as has been happening since last year-end.

In the latest instance, its pilots and engineers went on strike from September 30 to protest against non-payment of salary since March. The airline then declared a lockout on first till October 4 and then extended it till October 20. It as further extended till October 23 today.

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Agencies
May 26,2020

The Shopping Centres Association of India (SCAI) on Monday said the sector has lost over Rs 90,000 crore in the last two months, owing to the lockdown, and market players need much more than the repo rate cut and the loan moratorium extended by the RBI.

In a statement, the industry body said that the Reserve Bank of India's (RBI) relief measures are not adequate to support the liquidity needs of the industry.

According to the SCAI, there is a common misconception that the shopping centres' industry is centred around metros and large cities with investments only from large developers, private equity players and foreign investors.

"However, the fact is that most malls are part of the SMEs or standalone developers. i.e. more than 550 are single owned by standalone developers out of the 650-odd organised shopping centres across the country and there are 1,000+ small centres in smaller cities," it said.

Amitabh Taneja, Chairman of SCAI said: "The organised retail industry is in distress and has not earned anything since the lockdown and their survival is at stake. While the extension of the loan moratorium talks about some relief on repayment but won't help the industry in liquidity."

He said that a long term beneficial plan from the government is much required to revive the sector.

"Being the most safe, accountable, and controlled environment, unfortunately, malls have not been permitted to open which will lead to job losses and might even shut shops for a lot of mall developers," Taneja said.

In its representations to the Centre and the Reserve Bank of India, the association has also pointed out that, in absence of financial package and stimulus from the RBI, over 500 shopping centres may go bankrupt, that may lead to the banking industry staring at NPAs of Rs 25,000 crore.

The industry body has put forward its recommendations and requests to the government. It had sought moratorium till March 2021 at the least in terms of repayment of bank loans, interest, EMI and so on, without levy of any penalties or penal interest.

It has also sought a one-time loan restructuring with lower rates of interest, permitted for shopping centres and a facilitative and forward-looking support provision of short-term financing options for a period of six to 12 months, at lower interest rates, to meet the increased working capital requirements.

Among other relaxations, it had also appealed for GST rebates to offset the losses on account of and for the period of closure of business.

It also said that interest rates should be brought down to "manageable levels" of 5-6% in view of the precarious financial situation.

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Agencies
March 16,2020

Amaravati, Mar 16: Andhra Pradesh Chief Minister YS Jagan Mohan Reddy said that paracetamol is the only medication for coronavirus.

He said that COVID-19 is lethal for those have comorbid conditions including blood pressure, asthma and kidney diseases.

"There is no need to get panic about Coronavirus. Its impact is majorly on senior citizens aged above 60 years. It is dangerous to those suffering from diabetes, blood pressure, asthma and kidney diseases. For others, it is not so much dangerous. And paracetamol is the only medication for coronavirus," Reddy said on Sunday while addressing a press conference on the postponing of the local body elections as coronavirus cases continue to rise.

"In case anybody coming from foreign countries is found suffering from cough, cold and fever, bleaching powder should be sprayed on their belongings and things they use. The government is creating awareness on such precautions," he added.

Reddy slammed the State Election Commissioner's decision of postponing the local body elections for six weeks and alleged that the SEC was acting at the behest of TDP chief N Chandrababu Naidu.

The opposition has targeted Reddy on his statement, saying the chief minister is behaving "ignorantly" and "irresponsibly" on the issue of coronavirus.

"While Telangana CM had changed his stand and closed shops and theatres in his state, Jagan Reddy is speaking as if there is no need for any panic. This CM is behaving ignorantly and irresponsibly," said Naidu.

Andhra Pradesh has reported one case of coronavirus. The total number of confirmed COVID-19 cases across India has risen to 110.

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News Network
March 11,2020

Mar 11: Thirteen of the 22 rebel MLAs in Madhya Pradesh have given an assurance that "they are not leaving the Congress", senior party leader Digvijaya Singh said on Thursday while expressing confidence that the Kamal Nath-led government in the state will win a floor test.

"We are not keeping quiet. We are not sleeping," Singh told PTI, a day after Congress leader from the state Jyotiraditya Scindia quit the Congress and 22 MLAs submitted their resignations from the assembly in Madhya Pradesh.

Scindia was offered the post of Madhya Pradesh deputy chief minister but wanted his nominee, Singh said. However, Kamal Nath refused to accept a "chela", he said.

Scindia, he said, could have been a Congress nominee to the Rajya Sabha but "only Modi-Shah" can give a Cabinet post to the "over-ambitious" leader.

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