The airline was suspended
in October due to unpaid debts and salaries, but hoped that a funding
plan submitted to the Directorate General of Civil Aviation (DGCA) in
December would see its revival.
However, the plan was not backed by details of financing, leading to the expiry of the license at midnight December 31.
Kingfisher
is permitted to renew the license within two years, according to DGCA
regulations, and the airline claims it is “confident of securing
approval from the DGCA on the restart plan, license approval and
reinstatement of its operating permit”. Doubts still remain as to
whether vital funds will be forthcoming in order to facilitate this.
The
carrier, owned by liquor tycoon Vijay Mallya, has estimated debts of
US$2.5bn, owing money to banks, staff, airports and tax authorities.
Kingfisher has been grounded since October and recently saw two-thirds
of its 63 aircraft repossessed by creditors.
The firm has been
the worst-hit of India’s airlines in 2012, with the industry plagued by
high jet fuel prices, fierce competition, price wars and shabby airport
infrastructure.
The carrier was India’s second-largest until a
year ago but its share shrank to just 3.5% — the smallest in the country
— before operations stalled completely.
In a statement,
Kingfisher said its funding plan outlines that required finances would
be provided by its parent company, UB Group. The airline was also
recently in talks with Abu Dhabi-based Etihad Airways for investment, as
Etihad is seeking to widen operations in India.
Theresa
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