DGCA Suspends Kingfisher's License


New Delhi, Oct 19 (PTI) : After operating for nine years, Kingfisher Airlines today lost its license to fly with aviation regulator DGCA suspending it with immediate effect, capping three weeks of lockout in the beleaguered carrier.

The Directorate General of Civil Aviation (DGCA) suspended the Scheduled Operator Permit (SOP) of Kingfisher Airlines following its failure to come up with a viable plan of financial and operational revival.

Noting that the airline had not addressed "any of the issues" raised in its show-cause notice of October 5 and meetings with top officials, the DGCA suspended its SOP "till such time the Kingfisher Airlines submits a concrete and reliable revival plan ensuring safe, reliable, efficient and sustainable Scheduled Air Transport Services to the satisfaction of DGCA."

"They were asked to submit their operational preparedness plan for resumption of flight operations. Instead, they have sought more time to file a reply to the show cause notice not indicating any time frame for submitting the detailed response," an official spokesperson said, adding that this request was rejected.

"The DGCA has suspended the flying licence of Kingfisher Airline because of safety reasons," Civil Aviation Minister Ajit Singh told reporters here. Singh said the planes were not being maintained and serviced by their engineers who were on strike. "Safety can't be compromised."

Suspension of flying licence implies an immediate halt to all flying operations, which in any case have been grounded since October one when the lockout was declared. It also entails stopping of all ticket bookings on the entire network as well as through travel agents, DGCA officials said.

Kingfisher was issued an airline licence on August 26, 2003. It was actually in the name of Air Deccan which was bought over by the liquor baron Vijay Mallya-owned carrier. The permit is valid till December 31 this year.

Kingfisher has been saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of which has not been serviced since January. It currently has only 10 operational aircraft compared to 66 a year ago.

Elaborating on the grounds for suspension of the license, the DGCA order said Kingfisher had "in fact, no concrete revival plan for resumption of flight operations at this juncture which shows that they are unable to resume their scheduled air transport service."

  

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Comment on this article

  • mabel, bangalore

    Tue, Oct 23 2012

    Why not Reliance or SBI take up Kingfisher Airline the sinking ship? They can make it happen.

    DisAgree Agree Reply Report Abuse

  • Akshatha, Dubai

    Mon, Oct 22 2012

    LET AIR INDIA BUY THESE PLANES....

    DisAgree [4] Agree [2] Reply Report Abuse

  • Sandesh, Mangalore, oman

    Sun, Oct 21 2012

    ...Correction of my earlier comment

    Money which Mr Mallya spent on rags to riches cricketers of India as well as foreign plyers, should have been used to pay salaries of his own staff of King Fisher. Wth that he could carry the name Good Times higher than any other Airlines of India. I feel management as well as the owner to blame for this big blunder, I wonder, how Mr Mallya would show his face to his players during the next IPL.

    DisAgree Agree [11] Reply Report Abuse

  • manoj muliyil, Mangalore

    Sun, Oct 21 2012

    MR.ISMAIL K PERINJE THE LOAN RUNS TO 8000CR PLUS TO THE BANKING CONSORTIUM...SBI 1500 CR ALONE..IT IS REALLY SAD THAT IT WAS COMPLETE MISMANAGEMENT AND ARRONGANCE OF MALLYA WHICH HAS BROUGHT THIS LOVELY AIRLINES DOWN....AND I REALLY PRAY FOR THE EMPLOYEES OF THIS AIRLINES AND THEIR FAMILY..THEY WERE A VERY PROFESSIONAL LOT....

    DisAgree [1] Agree [7] Reply Report Abuse

  • maxim alfred dsouza, Mangalore / Nigeria

    Sun, Oct 21 2012

    Mallya's business principle is same. Liquor is his bread n butter. His other businesses are just fronts for the main business to prosper. Look at Kingfisher airlines. He used these businesses to promote the brand value of this liquor brand. He siphoned off money from MCF and others to his liquor biz. Since investing few crores for acquiring controlling stakes, he has not invested a penny in MCF. MCF would have expanded and flourished if any other good private company had taken over at that time. Rather money has been siphoned off from MCF. MCF survived on its own resources and being a Fertilizer company he could not swallow it fully. IPL team is also is being used for same purpose and will soon meet the same fate as KF. He spends a small part of his wealth on offering useless expensive ornaments to temples but has no money to pay his employees who were responsible for making KF a popular airline. Next to crash will probably be Force India.

    DisAgree Agree [6] Reply Report Abuse

  • Santhosh Rego, Uppoor/ Dubai

    Sun, Oct 21 2012

    Good Move by DGCA. Now aviation minister open his eyes.

    DisAgree [1] Agree [6] Reply Report Abuse

  • ISMAIL.K.PERINJE, PERINJE-YANBU/KSA

    Sun, Oct 21 2012

    Mallya concentrated on other business like IPL,Calender Girls,Car racing and politics.We lost good operating Airline due to negligence and mismanagement.Can Mallya repay all these losses from his other entity?Or these losses are to be on the shoulders of public?What is the volume of public bank loses?Even Central Govt did not come to the rescue of KFA?A question baffles us.In my earlier comments I used word 'accept' instead of 'except'. Inconvenience is regretted.

    DisAgree Agree [6] Reply Report Abuse

  • Rakshit Shenoy, Mangalore

    Sun, Oct 21 2012

    Dr. S. Kamath, Indigo is the only Indian Airline making profit, Reason is Robert Vadra and Priyanka Gandhi Vadra hold a substantial stake in the airline, with so much Vadra in the news all will know why only Indigo is in the green...... Run your imaginations wild...

    DisAgree [16] Agree [4] Reply Report Abuse

  • Stany D'sa, Mangalore/Dubai

    Sun, Oct 21 2012

    There are huge lapses in DGCA.They should have alerted Kingfisher air line long back about their mis management and accrued losses. Now it is too late to revive unless there is some sort of bail out methods. Ultimately Mallya is responsible for the air lines debacle.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Ravi. B. Shenava, MANGALORE

    Sun, Oct 21 2012

    Whatever may be the weaknesses of Vijay Mallya, but due to the Price-War and tough competition given by King Fisher, other Airlines had to keep their Fares Lower which meant a lot for the passengers who travel at their own cost and not at Company's TA/DA.
    We can observe that as soon as KF started facing problems other Airlines took disadvantage of the same and suddenly increased their Fare by almost 50% and during next Christmas Season I am sure they will increase fare by 100% or more.

    DisAgree Agree [7] Reply Report Abuse

  • Sandesh, Mangalore, Oman

    Sun, Oct 21 2012

    Money which Mr Mallya spent on rags to riches cricketers of India as well as foreign plyers, should have his own staff of King Fisher. With that he could carry the name Good Times higher than any other Airlines of India. I feel management as well as the owner to blame for this big blunder, I wonder, how Mr Mallya would show his face to his players during next IPL

    DisAgree [1] Agree [11] Reply Report Abuse

  • subhash chandra, Mangalore/ Abu Dhabi

    Sun, Oct 21 2012

    They should atleast suspended license of Air india Express, kingfisher is better than air india.

    DisAgree [2] Agree [27] Reply Report Abuse

  • Charles D'Mello, Pangala

    Sun, Oct 21 2012

    Nowadays people do not need five star airlines. we need generally a safe,prompt and cost effective airline to travel.I blame Kisgfisher Airlines show off and the mismanagement for this sad end.

    DisAgree [1] Agree [10] Reply Report Abuse

  • Gerald, Modankap

    Sun, Oct 21 2012

    Specifically MALLYA Group has shown more interest on SHOW OFF business rather than the actual !!! they would have work betterment for the airliner rather than putting more money on CRICKET TEAM !!! USELSS CALENDARS !!!! TIPU SULTAN SWORD !!! many other "RANGEEN" stories !!! bottom line is poor employees and the shareholders are badly effected due to missmangement and lavish lifestyles !!!

    DisAgree [1] Agree [13] Reply Report Abuse

  • G R PRABHU, BEJAI ,MANGALORE

    Sun, Oct 21 2012

    I think the Time has come for Mr. Mallya to sell the Company to any Good person.Then only we will get Times.

    DisAgree [1] Agree [8] Reply Report Abuse

  • Aadil Khan, Kasaragod, Saudi Arabia

    Sun, Oct 21 2012

    Sad to note a 5-star airline company's destiny was to see this day.

    Apart from 6000 employees are affected, thousands of retail shareholders of KFA are also going to be badly hit. Monday when the bourses are open, its share value would nosedive from CMP Rs. 11.50 to a strange number, but what would be that is a million dollar question.

    Hope some foreign airline companies come forward and rescue the sinking ship.

    DisAgree Agree [10] Reply Report Abuse

  • Amin Bhoja, Patte / Riyadh

    Sun, Oct 21 2012

    A black day for KingFisher Airlines history and too for aviation Industry. A Debt is too deep and it is hard to swim across.The policy of open sky and it's first bite of a kind!.The KingFisher and it's sickness?.

    DisAgree Agree [7] Reply Report Abuse

  • Sachidanand Shetty, Mundkur/Dubai

    Sun, Oct 21 2012

    If Mallya wants, KF can fly smoothly without any problem since he got enough money from other business which he can divert or invest without any hurdles from Indian Government and which is also allowed as per Indian Company Law too simply amending “Articles and Memorandum of Associations of Company” But in this case, Mallya wants Government to induce some funds to enjoy immunity from paying back. DGCA did their duty as per the written norms in their books but what will happens to KF Employees those were not paid salaries for last seven months? Does DGCA or Government will take some responsibility? Here again as per Corporate Disputes Act, piecemeal distribution of liability will come in to picture, it means Employees salaries to be paid first when KF s themselves insolvent. Till then those KF Employees gone on strike can enjoy their life without pay

    DisAgree Agree [10] Reply Report Abuse

  • Lawrence, USA

    Sun, Oct 21 2012

    The step-motherly treatment by the government to Kingfisher Airlines lead to its down fall. The government should bail out this Airliner just like they do with Air India Express/Air India in national interest.

    I flew on Kingfisher - it has/had excellent service, immaculately clean and hand-picked beautiful & charming Air Hostesses.

    Sad to see that we can't afford to keep up the quality things.

    DisAgree [4] Agree [22] Reply Report Abuse

  • Dr S Kamath , Mumbai

    Sun, Oct 21 2012

    Dear Ismail Jetairways also making huge losses every year .One of reason given is Huge Taxes for the Flight tickets .If you book a ticket for Mangalore from Mumbai the cost of ticket is Rs 750 to 1000 and the rest Rs 3000 is for the Tax .Second reason is collection of User Development fees by Various airports .3rd Reason is the rule that every airlines have to fly Non Profitable routes like North east etc .Except Indigo everyone is making losses

    DisAgree [1] Agree [6] Reply Report Abuse

  • RAGHUCHANDRA, MANGALORE

    Sun, Oct 21 2012

    In fact, the passengers and KFA had a VERY GOOD TIME till curtains came down. Mr Mallya will cash on the brand KINGFISHER and rope in investors and revive the airlines. If this does not happen it will be a great loss for passengers and gain to CRAP state owned carrier

    DisAgree Agree [8] Reply Report Abuse

  • nithesh ullal, mangalore

    Sun, Oct 21 2012

    The king of good times is now...
    The king of BAD times

    DisAgree [3] Agree [6] Reply Report Abuse

  • A. S. Mathew, U.S.A.

    Sun, Oct 21 2012

    From day one of this business, KF was losing money but the CEO or the CFO did't see the financially diving airlines, but someway bluffed the investors and the Banking industry. It is a fun story, how the governemnt was so late to ground this airlines which was swimming so deep in debt. It is sad that the 2nd largest airline was grounded. The investors and banks are going to lose a tons of money. It seems like the CEO and other top people who steered this airlines were running this operation totally intoxicated.

    DisAgree Agree [7] Reply Report Abuse

  • JerryMoras.com, Calgary, Canada

    Sun, Oct 21 2012

    Next week share market is going to be affected. World market is already has dipped Additionally, KFA suspension will add fuel to the fire.... Time to buy...

    DisAgree [3] Agree [3] Reply Report Abuse

  • ISMAIL K PERINJE, PERINJE-YANBU/KSA

    Sun, Oct 21 2012

    SAD DAY FOR AVIATION INDUSTRY AND AIR PASSENGERS.INFACT THE LOSS OF ALMOST 16 THOUSAND CRORE!I THINK A GOOD AMOUNT OF MONEY LOSS BY OUR OWN NATIONALIZED BANK!THE TERMINATION OF OPERATING LISENSE OF KFA WILL AFFECT BANKS?IN INDIA ACCEPT JETAIRWAYS,MAXIMUM PRIVATE AIRLINES WILL BE A FLOP!!!ANY REASONS?

    DisAgree [1] Agree [12] Reply Report Abuse

  • mudartha l, kankanady,mangalore.

    Sun, Oct 21 2012

    Road transport/bus service is profitable. Loss or Profit in lacks not in crores.

    DisAgree [2] Agree [6] Reply Report Abuse


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