Govt may cancel Kingfisher Airlines licence: minister | india | Hindustan Times
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Govt may cancel Kingfisher Airlines licence: minister

Aviation minister warned Kingfisher Airlines that its licence may be cancelled if safety norms and financial viability conditions are not met.

india Updated: Mar 20, 2012 15:23 IST
Kingfisher

A-deserted-Kingfisher-Airlines-counter-at-Mumbai-domestic-airport-HT-Photo-by-Prasad-Gori

Aviation minister warned Kingfisher Airlines that its licence may be cancelled if safety norms and financial viability conditions are not met.

Kingfisher Airlines, which has debt of $1.3 billion, is scrambling to raise funds as banks have refused to lend more for day-to-day operations.

A massive cutback in flights has reduced its revenue, leaving the carrier with little cash to pay its employees, airports and tax authorities.

Vijay Mallya, the flamboyant liquor baron who owns a majority of Kingfisher, was due to meet the DGCA later on Tuesday or Wednesday, said Singh.

"If he gives a plan and says I have that many planes, that much schedule, then why should we cancel?," Singh said.

"The problem is, last two-three months, he has given several plans and he has not adhered to any of them," Singh said.

Shares of Kingfisher Airlines, which has a market capitalisation of about $200 million, hit an all-time low in early trade on Tuesday. At 12.43pm, they were down 6.2% at 18.85 rupees in a flat Mumbai market.

"As a government, we don't want to shut down any industry. There are employees and customers involved. Kingfisher had 22% traffic. If we close it suddenly, where will the fares go?," Singh said.

Adding to its mounting woes, Kingfisher's last independent director quit on Monday.