Mumbai: The Directorate General of Civil Aviation (DGCA)’s suspension of Vijay Mallya-controlled Kingfisher Airlines’ licence has put its lenders in a bind, making their task of recovery more difficult.
Senior public sector executives said recovering money remains top priority through legal routes. But banks are constrained to take any action against the “big fellow”, referring to the clout of Mallya. The troubled airline has a debt of over Rs 7,000 crore.
DGCA today suspended the licence of Kingfisher after the airline failed to submit a concrete revival plan. The regulator had served a show-cause notice to the the airline on October 5 following a strike by pilots and engineers.
Kingfisher has defaulted on payments to lenders and is now a non-performing asset (NPA) with most banks. They have already made significant provisions for airline loans.
21/10/12 Business Standard
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Senior public sector executives said recovering money remains top priority through legal routes. But banks are constrained to take any action against the “big fellow”, referring to the clout of Mallya. The troubled airline has a debt of over Rs 7,000 crore.
DGCA today suspended the licence of Kingfisher after the airline failed to submit a concrete revival plan. The regulator had served a show-cause notice to the the airline on October 5 following a strike by pilots and engineers.
Kingfisher has defaulted on payments to lenders and is now a non-performing asset (NPA) with most banks. They have already made significant provisions for airline loans.
21/10/12 Business Standard
