Kingfisher must ensure safe, viable service for licence renewal: Ajit

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Ajit Singh
Ajit Singh

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.

(This article was published on February 13, 2013)
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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
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

from:  srivani
Posted on: Feb 14, 2013 at 00:58 IST
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Budget 2015 highlights

  • Following are the highlights of the Union Budget 2015-16 presented by Finance Minister Arun Jaitley in Parliament today:
  • No change in personal Income Tax * Health Insurance Premium deduction hiked from Rs 15,000 to Rs 25,000; for senior citizens to Rs 30,000
  • Transport allowance exemption hiked to Rs 1,600, from Rs 800 per month
  • Additional 2% surcharge on people earning over Rs 1 cr; to fetch Rs 9,000 cr
  • Wealth tax abolished
  • Direct Taxes Code (DTC) dropped
  • Rs 50,000 deduction for contribution to New Pension Scheme
  • To lower Corporate Tax to 25% over next four years
  • GAAR implementation deferred by 2 years to April 2017
  • Service Tax rate hiked to 14%, from 12.36%
  • Tax free bonds for roads, railways, irrigation projects
  • 2015—16 growth between 8—8.5%, double digit growth feasible
  • Retail inflation close to 5% by March, room for monetary policy easing
  • To achieve fiscal deficit of 3% of GDP by 2017—18
  • Fiscal Deficit target 3.9% in 2015—16, 3.5% in 2016—17
  • Revenue Deficit to be 2.8% in 2015—16
  • Current Account Deficit for 2014—15 to be below 1.3% of GDP
  • To introduce comprehensive law to deal with black money
  • Benami property transaction bill to tackle black money transaction in real estate soon
  • 100% deduction for contribution to Swachh Bharat, Clean Ganga projects
  • GST to be put in place by April 1, 2016
  • Internationally competitive direct tax regime to be put in place to incentivise saving
  • Incentivise use of credit, debit cards; disincentivise cash transaction to curb black money.
  • The Finance Minister has covered good ground, but more needs to be done »

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