Kingfisher Airlines gets NoC from oil firms, leasers to fly again; shares up
Kingfisher Airlines has received "no objection certificates" (NoC) from several vendors, aircraft leasers and oil marketing companies, but has yet to receive the same from airport operators, the airline's chief executive Sanjay Agarwal told the aviation regulator, the Director General of Civil Aviation (DGCA), today.
Kingfisher shares extended gains to 6 per cent on the news. At 11.18 a.m., the stock traded at Rs 14.68, up 4.34 percent, on the Bombay Stock Exchange.
Mr. Agarwal also informed the regulator that it would resume operations on a cash-and-carry basis, if the DGCA gives the go-ahead.
This was Mr Agarwal's first meeting with the regulator after the airline's flying permit expired on December 31. The DGCA had suspended the airline's licence to fly in October after months of cancelled flights and staff walkouts.
The DGCA had told the airline that NoCs from stakeholders were required before it could consider allowing the airline to resume operations.
The regulator last week wrote off a revival plan, filed by chairman Vijay Mallya, saying the airline's planned investment of Rs 650 crore was not enough to restart operations.
The revival plan does not include any details on the payment of dues to airports and may not guarantee a reliable service, Reuters reported earlier, citing a source.
Mr Mallya has told employees that the grounded carrier is aiming for a limited restart using seven aircraft.
In a letter to employees, the first since Kingfisher's operating license expired, the chairman detailed the steps the company has taken to restart operations.
The airline plans to restart operations using seven planes by the start of the 2013 summer schedule, increasing to 21 planes in four months. The second phase of the plan will see it expand to 57 planes within 12 months of a recapitalisation.
The UB group has committed to a funding of approximately Rs. 650 crore for the limited restart plan and the company is in discussion with multiple investors to secure a deal for the debt-laden carrier, Mr Mallya has said.
Kingfisher Airlines employees have threatened to go to court with a winding-up petition unless the management pays all their pending dues.
Launched in May 2005 with great fanfare, Kingfisher is estimated to owe $2.5 billion (Rs. 13,628.36 crore) to banks, staff, vendors and others. The airline management is scheduled to meet its lenders on Friday.
The airline has not paid salaries for over eight months now. The airline, which has not flown since October, has tried unsuccessfully for over a year to bring in new investors.
Four aircraft of the airline have been de-registered, and there are petitions for de-registering two more planes.
With inputs from Reuters
