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MARKET UPDATE
Kingfisher has to satisfy DGCA on all issues, not just money: Ajit Singh
Mon, 08 Oct 2012 01:10:00 +0530
Business Standard Economy Policy News

The troubled Kingfisher Airlines would have to file a “concrete” plan for running the carrier to the Directorate General of Civil Aviation (DGCA) and satisfy it on all aspects like safety and payment of salaries before it is allowed to resume flights, civil aviation minister Ajit Singh said today.

“The DGCA has issued a show cause notice to Kingfisher Airlines to let us know what their concrete plans are and not just that they will get investments from here and there. Tell us a concrete plan on how you will pay salaries and how you will make arrangements to run the airlines,” he told reporters. Singh said the airline would have to satisfy the aviation regulator that “there will be no safety issues and there will be no problems due to the financial crisis.”

The DGCA had issued a show cause notice to the Vijay Mallya-owned carrier on Friday asking why its flying licence should not be suspended or cancelled, as it had grounded its entire fleet and failed to offer safe, efficient and reliable service.
It has given the airline 15 days to reply.

“It (licence cancellation) will depend on what reply Kingfisher gives and DGCA will decide that,” he said.

Referring to the alleged suicide by the wife of a Kingfisher employee apparently over financial stress due to non-payment of salary to her husband, the minister said “it was sad and unfortunate that such a thing happened”.
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