Thu, 11 Apr 2013 09:45:00 GMT | By The Hindu Business Line

Kingfisher Airlines submits new revival plan

This comes a day ahead of a scheduled meeting between United Spirits, also a part of Mallya’s UB Group, and the UK-based Diageo, in connection with their Rs 11,000-crore deal


Kingfisher Airlines submits new revival plan (© Reuters)

New Delhi: In yet another effort to restart operations, Vijay Mallya-promoted Kingfisher Airlines has submitted a fresh revival plan to the Directorate-General of Civil Aviation.

This comes a day ahead of a scheduled meeting between United Spirits, also a part of Mallya’s UB Group, and the UK-based Diageo, in connection with their Rs 11,000-crore deal. It is believed that funds collected from the deal could be used to repay part of Kingfisher’s debt. Incidentally, Diageo’s open offer to acquire 26 per cent shares of United Spirits also commenced on Wednesday. Many banks, which are holding United Spirits’ shares as collateral against loans extended to the grounded Kingfisher Airlines, are reportedly reluctant to offload the shares pledged with them in the open offer.

Meanwhile, Chief Executive Officer of Kingfisher Airlines Sanjay Aggarwal, who met DGCA Arun Mishra, told reporters, “We have submitted a plan which includes the schedule that we plan to operate, the air traffic plan and the number of people we have. We have requested that our licence be renewed. Initial funding to restart the airline will be organised by the group.”The airline plans to restart with 5 Airbus 320 and 2 ATR aircraft. Since the summer schedule has already been finalised, the chance of Kingfisher taking to the skies will be in the winter schedule, which normally begins end of October.

When contacted, DGCA sources said that the plan is more practical this time. “They have got NOCs from private airport operators, component suppliers, fuel companies and lessors. They have also offered to pay salaries of staff till January. They want the licence to be renewed so that can raise money to start operations,” a source said.

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