Kingfisher’s license may be revoked

Ailing airline Kingfisher may soon have its aviation permits revoked by Indian government officials.

Travel Insurance News - 08/10/2012

<< ANA’s Tokyo to Seattle Dreamliner launch delayed | Travel News | Kingfisher aims to re-launch on 20 October >>

Ailing airline Kingfisher may soon have its aviation permits revoked by Indian government officials.

Ajit Singh, India’s aviation minister said on Monday that the firm would lose the ability to operate if it does not present a satisfactory plan to continue on despite major financial woes, according to a Wall Street Journal report.

The carrier will reportedly be required to submit a written explanation to the country’s Directorate General of Civil Aviation presenting a case for why its license should not be revoked or suspended. The company has been given two weeks to respond, officials said.

The news comes amid a serious debacle for the airline, in which the company’s pilots, ground staff and engineers have refused to work because they have reportedly not been paid in months, forcing the firm to cancel hundreds of flights in recent weeks. Moreover, Kingfisher has not posted any profits since its launch seven years ago and is millions in debt to lenders and aircraft leasing firms.

Monday saw the company’s shares dropped by another 5 per cent – the daily limit – for the sixth consecutive trading day. Kingfisher stock plummeted by nearly 70 per cent last year and has diminished by an additional 49 per cent since 1 January, closing at just INR 12.60 (14.9p) on Monday afternoon.

<< ANA’s Tokyo to Seattle Dreamliner launch delayed | Travel News | Kingfisher aims to re-launch on 20 October >>