With Kingfisher lenders deciding to start the process of recovering Rs 7,500 crore outstanding loans from the grounded airline, the government today ruled out renewing its licence unless it ensures a safe and viable service.
“Unless the Directorate General of Civil Aviation (DGCA) is satisfied that the airline can provide safe and viable service, there is no question of renewing the licence,” Civil Aviation Minister, Ajit Singh said here.
He said the government cannot do much in Kingfisher’s case.
“What the airline does with the banks is between them,” Singh said.
After a two-hour-long meeting with the Kingfisher representatives in Mumbai, the bankers had yesterday said they had decided to begin the process of recovering Rs 7,500 crore outstanding loans from the grounded airline as the company had failed to provide any specific revival plan.
“We have decided to recall (initiating the recovery process) the loans given to Kingfisher Airlines. However, each bank board will decide the future course of action,” Shymal Acharya, Deputy Managing Director (Mid-Corporates) of SBI, which is leader of consortium of lenders, had told in Mumbai.
Besides five bankers led by SBI, the meeting was attended by the airline’s management, including CEO Sanjay Agarwal and UB Group President and CFO, Ravi Nedungadi.
The decision came even as Kingfisher Chairman, Vijay Mallya had given an assurance to Kingfisher employees on the issue of clearing their salaries for 11 months and restarting operations with the forthcoming summer schedule.
Keywords: Kingfisher, ensure safe, viable service, licence renewal, Ajit Singh, Kingfisher lenders, process of recovering, outstanding loans, grounded airline, renewing licence, Ajit Singh
Comments:
Govt needs to build india internal capacity in various sectors.
Airlines is one such.
Government should stop loading the burden of the subsidies given on oil onto the
turbine fuel supplied to airlines.
An aviation minister and a competitor of kingfisher have colluded and ensured in
delaying the fdi in aviation such that they could wipe out competion, by hurting
kingfisher.
When the kingfisher had a brand valuation of 2000crs.
Mr mallya maybe flamboyant, but thats his personal business.
If we let this witch hunting continue, we indians will be the losers.
There was a time when you, me n our children n parents could travel on a flight
ticket which costed rs 6000, today the same ticket is costing rs 12000 avg,
The government needs to intervene and protect a company which is indian and
where our transport sector still needs to be strenthened.
If they could do it for satyam , why not kingfisher.
Our politicians should stop popular politics and take decisions beneficial for our
nation
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