Aviation regulator DGCA today suspended the flying licence of Kingfisher Airlines after the beleaguered airline failed to come up with an adequate reply to the showcause notice. Kingfisher also could not provide a viable plan for its financial and operational revival and resolve the impasse with its employees over payment of their salary dues.
Jitendra Bhargava, former ED of Air India said it is a beneficial decision taken by DGCA. According to him, this will help owner Vijay Mallya to arrange for some money and ensure that his employees are paid. However, it is up to the government now to decide whether the licence will be kept under suspension or will be cancelled altogether.
Bhargava further added that Kingfisher has already accumulated a lot of debt and it can no longer borrow money from banks. Therefore, the situation is not at all rosy for the company at the moment.
20/10/12 moneycontrol.com
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Jitendra Bhargava, former ED of Air India said it is a beneficial decision taken by DGCA. According to him, this will help owner Vijay Mallya to arrange for some money and ensure that his employees are paid. However, it is up to the government now to decide whether the licence will be kept under suspension or will be cancelled altogether.
Bhargava further added that Kingfisher has already accumulated a lot of debt and it can no longer borrow money from banks. Therefore, the situation is not at all rosy for the company at the moment.
20/10/12 moneycontrol.com
