In your interest.
Online Personal Finance Magazine
No beating about the bush.
Zee and Subhash Chandra have always managed to escape from punishments in the past even when irregularities have been proven. However, this time they are facing a Congress MP and a powerful corporate who has right connections in place. Can Zee and Subhash Chandra escape this time?
When DGCA expressed concern about the airline's financial health as it was not going to get any money either from its lenders or its banks, Kingfisher officials informed the regulator that they would be arranging funds for operations through internal resources
New Delhi: Beleaguered Kingfisher Airlines, which has resolved a 26-day deadlock over salary dues with its employees, today told aviation regulator Directorate General of Civil Aviation (DGCA) that it would use its own resources to fund its revival, reports PTI.
At a meeting with DGCA chief Arun Mishra, Kingfisher Airlines CEO Sanjay Aggarwal informed him that "at present, the source of funding for the airline will be through their own resources," official sources said after the 30-minute meeting.
The assurance came a day after Kingfisher promised to pay four months' pending salary to its employees by December, who immediately called off their strike and the management lifted the 25-day lockout.
While there is no tangible information about any fresh investments coming in the near future, the sources said Kingfisher would have to spend its own resources for revival.
It has been shelling out an average of about Rs20 crore a month on payment of salaries to about 4,000 employees.
The airline's top brass are likely to discuss the revival plan with UB Group chief and Kingfisher promoter Vijay Mallya very soon, officials said.
At the meeting, the DGCA chief asked the management to take on board all its stakeholders like Airports Authority of India, other airport operators, oil companies and Maintenance, Repairing and Overhaul operators to support the airline's revival plan, the sources said.
They said the liquor baron Vijay Mallya-owned airlines has been asked to start meetings with officials in the DGCA headquarters here and regional offices on operational and airworthiness issues.
During the meeting, Mishra also directed the airline to prepare its winter schedule and file the same considering the number of aircraft available with them for operations.
The regulator said it would also be consulting these stakeholders before it took any decision to revoke suspension of the airline's flying license imposed on 5th October.
The DGCA also asked the debt-ridden airline to prepare and submit its winter schedule, depending on the number of aircraft it had in its fleet.
Before the airline was grounded on 30th September, Kingfisher had 10 operational aircraft -- seven Airbus A-320s and three ATR turboprops, and is likely to get one more soon after it completes the mandatory and elaborate 'C-checks'.
The carrier, which last year had a fleet of 66 aircraft, now has ten -- seven Airbus A-320s and three ATR turbo-props.
One more aircraft would join the fleet soon after it completes the mandatory engineering check.
Kingfisher is saddled with a loss of Rs8,000 crore and a debt burden of another over Rs7,524 crore, a large part of which has not been serviced for several months.
Valia, the brother-in-law of Dilip Shanghvi of Sun Pharma, is the new partner for Telenor in India after ending its telecom joint venture with Unitech