Aggarwal: Strategy shift

New Delhi, April 10: Kingfisher Airlines CEO Sanjay Aggarwal today submitted a new revival plan to the Directorate General of Civil Aviation (DGCA).

“We have shared the funding and traffic plans. The initial funding to restart the airline will come from the parent UB Group. We have also requested that our flying licence be renewed,” Aggarwal said after meeting DGCA chief Arun Mishra here.

According to sources, the civil aviation regulator will not take a decision till Kingfisher clears all dues to lenders and employees, who have not been paid for almost 10 months.

Kingfisher’s flying licence, or the scheduled operator’s permit, was suspended in October and lapsed in December after the airline was grounded following a strike by its employees, including pilots, over the non-payment of dues.

Today’s meeting came months after the DGCA sought a written commitment from the promoters of the airline on the infusion of additional funds by the parent company.

Kingfisher has offered to resume limited operations with five Airbus A-320s and two turboprop ATRs and gradually increase the number of planes to 20.

Though Aggarwal did not specify a timeline for starting flights, sources said Kingfisher could not resume operations before the winter schedule starting October.

Aggarwal claimed Kingfisher had everything required to restart the airline. “We have submitted the NoCs (no-objection certificates) also.” However, he did not clarify which of its vendors had given the NoCs.

Kingfisher has obtained NoCs from private airport operators, while the Airports Authority of India, tax authorities and banks have made it clear that they would not budge till the airline starts clearing its dues.

Earlier this month, a spokesperson for the airline said it had paid salaries for June and July 2012.

Meanwhile, the State Bank of India, the leader of a consortium of 17 lenders to Kingfisher, has sent a legal notice to the airline seeking to recover loans. Though the lenders have sold shares of United Spirits and Mangalore Chemicals and Fertilisers, they are still not confident of recovering their loans.

Sources said the banks might invoke corporate guarantees given by United Breweries Holdings.

Jet-Etihad deal delay

Etihad Airways’ purchase of a stake in Jet Airways could be delayed until at least August as the Abu Dhabi-based carrier seeks assurances following setbacks for several Gulf investors in India, according to a Reuters report.

Etihad, which is expanding globally, has been in talks over an equity stake in Jet since September after India relaxed ownership rules and allowed foreign airlines to buy up to 49 per cent in local carriers.

The Gulf airline is eyeing a 24 per cent stake, valued at about $330 million.