Govt awaiting DGCA report on KFA: Ajit Singh
Posted on: 05:12 PM IST Mar 21, 2012
New Delhi: The government on Wednesday said it will not come to cash-strapped Kingfisher's rescue if legal action is taken against the private airline following the aviation regulator's report on the carrier's operational capability and flight safety.
The Director General of Civil Aviation (DGCA) is mulling cancellation of the airline's flying permit. The watchdog on Tuesday summoned the carrier's chairman, Vijay Mallya, for a "clear picture" on its day-to-day operations, status of aircraft and flight schedule.
"We are waiting for report from the DGCA on Kingfisher Airlines. The DGCA has not submitted any report to the government," said Civil Aviation Minister Ajit Singh.
Singh told reporters that the government would not defend the airline if action is taken against it.
Mallya on Tuesday said the carrier's international operations would remain suspended till its status with International Air Transport Association's (IATA's) inter-airline transaction body is restored.
Earlier this month, IATA had suspended Kingfisher from its inter-airline transaction wing ICH (IATA Clearing House) and BSP (Billing and Settlement Plan) accounts on account of non-payment of dues. This is a move akin to the Reserve Bank of India (RBI) removing a commercial bank from its currency clearing system.
The airline had slashed its wide-bodied aircraft operations on international sectors that were making heavy losses. The carrier also had to return one leased Airbus A330-320 to its lessor in Britain.
The DGCA had earlier given a showcause notice to the airline for failing to inform it of the curtailed flight schedule which caused immense hardship to passengers.
Kingfisher has a debt of Rs.7,057.08 crore. Its net loss widened to Rs.444.27 crore for the quarter ended Dec 31, 2011, from Rs.253.69 crore in the October-December quarter in the last fiscal.
On being asked about steep hike in airfare following Kingfisher crisis, Singh said he had not noticed any such hike.