Legal stamp must for Kingfisher overseas plans to take wing

New Delhi: The UB Group-owned Kingfisher Airlines Ltd has run into another roadblock in its ambitious plan to fly to international destinations with a necessary relaxation in government policy still pending approval even as the airline targets an August launch of its first non-stop flight between Bangalore and San Francisco.
In September, Deccan Aviation Ltd, in which UB has a controlling stake, had sought an “in-principle” approval from the government for permission to fly to as many as two dozen cities worldwide, anticipating a relaxation of eligibility criteria by December to fly overseas. Indian rules mandate at least five years of domestic flying experience before being able to start international operations.
Given that uncertainty, the next best option for the carrier was to fly on the rights of Deccan, which completes five years of operations in August. The UB Group will by April have a 69% stake in the merged Kingfisher-Deccan entity.
But the civil aviation ministry has said it still cannot grant the “in-principle approval” before the legal merger of the two entities is completed and the documents are submitted with regards to the ownership structure, according to a senior government official, who declined to be identified.
26/02/08 Tarun Shukla/Livemint

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Categories: Deccan Feb 2008, Foreign Feb 2008, Kingfisher Feb 2008, New Feb 2008