Monday, March 19, 2012

Govt summons Mallya, may cancel Kingfisher licence

New Delhi: The Kingfisher drama appeared to be entering the end-game phase, with the ground being prepared for suspending the airline's operating licence.
The suspension of the licence will mean Kingfisher will have to stop operating its scheduled flights.
Official sources said that a showcause notice as to why the airline's licence should not be suspended for flouting licence conditions was issued to Kingfisher at the end of January.
Going by the rules, the airline should have replied within 15 days of the notice being sent to it, but it failed to do so.
The airline not sticking to the various recovery plans that it had submitted to the Directorate-General of Civil Aviation (DGCA) and its inability to pay salaries to its employees and maintain its approved schedule are some of the key reasons for considering suspending the airline's operating licence, sources close to the developments said.
The airline, however, declined to comment, claiming that no showcause notice has been received, a point contested by the Government.
19/03/12 Business Line
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