The operating licence of Kingfisher Airlines will lapse on December 31, despite the airline applying to the Director General of Civil Aviation (DGCA) for its renewal on Thursday.

Terming the decision to apply for its licence renewal as a routine procedure, official sources told Business Line that as there was no mention of when the airline planned to start operations or where the funds needed to clear debtors’ dues were, the licence was unlikely to be renewed.

“The airline is following laid down procedures. A scheduled airline has to apply for renewal before the licence expires. They have fulfilled the formality. Now the airline watchdog will have to see whether they fulfil the criterion on which they were grounded before renewing or rejecting the licence,” a senior Government official said.

The airline’s licence was suspended on October 20. At that time the DGCA had said that the licence would remain suspended till the time it submitted a concrete and reliable revival plan ensuring safe, reliable, efficient and sustainable Scheduled Air Transport Services.

The airline has a debt of over Rs 8,000 crore.

ashwini.phadnis @thehindu.co.in

(This article was published on December 20, 2012)
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