Kingfisher may lose licence if bills are not paid
Carrier must also meet safety standards
New Delhi: India may cancel the flying licence of debt-laden Kingfisher Airlines if it fails to meet safety standards and pay its bills, the aviation minister warned yesterday.
Kingfisher chief Vijay Mallya has been summoned to meet the Dir-ector General of Civil Aviation (DGCA), Bharat Bhushan, in New Delhi to explain the airline's current situation and discuss a revival strategy.
"We will convey our points to the DGCA," Mallya told reporters in New Delhi.
Separately, the civil aviation regulator told Indian television news channel NDTV that Kingfisher had said it was unable to live up to its earlier flight scheduling commitments.
"It's a completely difficult situation which cannot go on like this. I would not like to speculate more," Bhushan said.
Investor concerns
Kingfisher shares plunged 12 per cent on investor worries the airline would shut before recovering marginally to trade over seven per cent lower at Rs18.65 (Dh1.36). Shares hit an all-time low of Rs17.55 in November.
"We have to look at how they are meeting safety norms. The regulator continues to examine each Kingfisher flight for safety," Aviation Minister Ajit Singh told reporters.
"If required, the licence can be cancelled as passenger safety is a top priority," Singh said, adding Kingfisher's financial arrears could also force the carrier's grounding.
The airline's bank accounts have been frozen by Indian authorities due to a failure to pay taxes which it collected from passengers.
