Government not satisfied with Kingfisher’s investment plan
MDT/PTI 11 January 2013

“The revival plan submitted by Kingfisher Airlines had lots of issues regarding lenders, staff payment which we felt may not lead to reliable services,” a senior DGCA official said

New Delhi: The government is not satisfied with Kingfisher Airlines’ plans to invest Rs650 crore to resume its operations as it may not guarantee an efficient and reliable service, reports PTI quoting a senior DGCA official.

 

“We want an airline to operate in consistent, efficient and reliable manner. The revival plan, which was submitted by the airline, had lots of issues regarding lenders, staff payment which we felt may not lead to reliable services,” the official said.

 

Kingfisher Airlines plans to invest Rs 650 crore as part of its plan to return to the skies. The airline had lost its operating licence on 31 December 2012 and had stopped flying since October.

 

The official, not wishing to be named, said the revival plan filed by Kingfisher chairman Vijay Mallya last month with the country's aviation regulator Directorate General of Civil Aviation (DGCA) may not be sufficient to carry out a reliable service.

 

“The plan had no provision for payment of airport operators, who want their dues to be paid before the airlines starts flying again,” the official said.

 

The official said the payment plan of due salary and wages of staff was in a phased manner, which “we felt may not lead to reliable services. If the employees were not paid, then the staff may stop working again which may cause inconvenience to passengers. There should be no inconvenience to passengers,” the official said.

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