DGCA requires additional details from Kingfisher Airlines on its finances

SME News, Saturday, Dec 29, 2012 17:00:33 PM IST

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NEW DELHI: Debt-ridden Kingfisher Airlines is asked to submit additional details on how it would fund its revival plan submitted to the aviation regulator Directorate General of Civil Aviation (DGCA) for for resumption of its flight operations.

The beleaguered carrier has also been asked to submit more details as to how it would garner funds for payment of dues to its lenders and vendors, apart from paying the pending salaries of its employees.

Recently, Kingfisher CEO Sanjay Aggarwal had informed DGCA chief Arun Mishra that the airline would require close to Rs 652 crore over the next 12 months to run its operations and the amount would be put in by its parent company UB Group. Of this, Rs 120 crore would be needed to meet salary arrears for its employees.

However, there was no word from the UB Group as to how it would commit the funding and raise it from where. Banks have been unwilling to fund the cash-strapped airline.

Moreover, the Civil Aviation Minister Ajit Singh had also said that the airline's parent company has not disclosed anything regarding funding.

Kingfisher has a debt of nearly Rs 8,000 crore and accumulated losses and liabilities of a similar amount. Since October, the airline has been grounded after its pilots and engineers went on strike.

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