Kingfisher revival hinges on clearing overdues: govt
22 Jan 2013
The civil aviation ministry is reported to have expressed willingness to support the revival plan of grounded Kingfisher Airlines Ltd provided the company settles dues to its employees.
However, aviation minister Ajit Singh today said that mere payment of salaries will not be enough for Kingfisher to restart operations.
Lenders to the debt-ridden carrier have asked the company to cough up Rs1,000 of the overdue amount of the around Rs7,000 crore it owes a consortium of lenders led by State Bank of India (SBI).
"The airline needs at least Rs1,000 crore for restarting operations," he said.
Kingfisher chief executive Sanjay Aggarwal had met officials of the civil aviation ministry to discuss the revival plan after the DGCA earlier rejected the proposal.
Kingfisher, which has not flown since early October 2012, lost its operating licence in December 2012.