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HindustanTimes Sun,28 Dec 2014

Regulator puts Kingfisher Airlines on notice

HT Correspondent, Hindustan Times  Mumbai/New Delhi, October 05, 2012
First Published: 19:58 IST(5/10/2012) | Last Updated: 01:09 IST(6/10/2012)

The aviation regulator has issued a show cause notice to Kingfisher Airlines, asking why its permit should not be cancelled or suspended as it had failed to “establish a safe, efficient and reliable service”.

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The Directorate General of Civil Aviation (DGCA) said that the airline, which suspended operations and declared a partial lockout till October 12, had been abruptly cancelling flights time and again in the last 10 months, causing great inconvenience to fliers.

“The DGCA has issued a show cause notice to Kingfisher Airlines, to be replied within 15 days, that why its permit should not be cancelled or suspended under the provisions of Section 15(2) (b) of Schedule XI of the Aircraft Rules 1937 as the airline has failed to establish a safe, efficient and reliable service,” a government statement said.

“The government has also taken legal opinion in this regard. The DGCA may cancel or suspend permit of an airline for such period as it thinks fit, if it is satisfied that the holder of the permit has failed to establish a safe, efficient and reliable service,” the statement said.

The aviation ministry said Kingfisher Airlines’ operations had been under suspension since September 30. It said the DGCA had summoned its CEO and asked for an operational plan.

“The airline has not been able to resolve its issues. They have not approached DGCA with any operational plan. The DGCA reviewed the current situation and decided to issue the show cause notice.”

Meanwhile, State Bank of India said Kingfisher Airlines lenders had decided to release funds to the debt-ridden airline on “humanitarian grounds”.

“The money that has been released by the tax authorities, 80 per cent of that will be made available to the company on humanitarian grounds, specifically to pay salaries of the employees,” SBI chairman Pratip Chaudhuri was quoted as saying by PTI.


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