Cash-strapped Kingfisher Airlines has put together revival plans on December 24, 2012 and has submitted the same to the director general of civil aviation (DGCA) in a meeting, according to sources. The scrip for the company hit Rs 15.21 on December, 21 2012 and this was up to Rs 15.97 at the Bombay Stock Exchange after the announcement.
The DGCA had cancelled the airline’s licence on October 20, 2012, after a variety of issues started plaguing the company, including the non-payment of their employees salaries and the grounding of their flights. They had also asked the air carrier to provide a reasonable revival plan, but they did not do so in time.
The winter flight schedule of the airline carrier had also been rejected as it was unable to provide a suitable departure rate due to mounting debt and the departure a of a large number of employees. Kingfisher has been trying to make it back on its feet by enticing potential foreign investors and teasing employees with a promise of paying their salaries.
There is an upcoming licence renewal that is to take place on December 31, 2012 and this could be the reason why the airline is putting forward its proposal.
The company had a meeting with lenders in the Indian city of Mumbai and said that they have shared a plan for recapitalization with lenders which will also be shared with a designated group of bankers. They went on to say that banks have not been approached for support and that funding will be self sufficient and be implemented in a phased manner.