Grounded Indian carrier Kingfisher Airlines has filed a revival plan with the country's airline regulator, a senior government official said, in an effort to renew its operating license before it expires at the end of the year.
Kingfisher, which has not flown since October, has estimated debts of USD$2.5 billion and owes money to banks, airports, tax authorities, plane leasing companies, and its staff.
The Directorate General of Civil Aviation, India's aviation regulator, which suspended Kingfisher's license to fly after months of cancelledflights and staff walkouts, has demanded a turnaround plan before the airline is permitted to fly again.
The DGCA wants all creditors to agree to the revival plan submitted by Kingfisher, and has not decided on its course of action, said a government official who has direct knowledge Of the matter, speaking on condition of anonymity.
Bankers maintain they have the option of restructuring Kingfisher'sloans for a second time, or infusing more capital, but they are awaiting a concrete revival or turnaround plan from the company, including capital injection by company chairman Vijay Mallya.
The airline did not say where it would find the money it needs, but mentioned it was in talks with several parties, including one in London, for new cash, the source said.
Mallya's United Breweries plans to invest INR6.52 billion rupees in the airline as part of the turnaround plan, according to reports in a local newspaper.
Kingfisher has tried unsuccessfully to raise cash for more than a year. It said earlier this month it was in talks with Abu Dhabi's Etihad Airways and other potential investors about selling a stake in the carrier.
airwise.com
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