Kingfisher One Step Closer to Permanent Shutdown-UPDATE

Kingfisher owner Vijay Mallya has not found an investor for his debt-strapped airline…

Indian carrier Kingfisher Airlines has likely moved closer to shutting down for good after India’s aviation regulatory body asked why its licence shouldn’t be cancelled.

‘The Directorate General of Civil Aviation (DGCA) said the airline had failed to establish a “safe, efficient and reliable service”, and asked it to respond within 15 days.’

Kingfisher stopped its flights last Monday when workers went on strike and some violence erupted between employees and management. Most of the carrier’s workers have not been paid in seven months.

‘”We will not allow Kingfisher to fly unless they meet the concerns that the DGCA has on safety and on the ability to maintain their operations,” Aviation Minister Ajit Singh told ET Now television channel.’

Kingfisher has reported debts of between $1.5 billion and $2.5 billion. Most analysts say the airline would likely need $1 billion to stage a turnaround. But since the airline has never turned a profit since it launched in 2005, the prospects of a bailout look very slim.

Source

UPDATE:

Kingfisher Airlines License Suspension is Imminent