Kingfisher Airlines unlikely to bounce back post license suspension

The airlines aircraft won't be allowed to be repossessed by lessors unless AAI get about Rs 15 crore per plane whom KFA owes close to Rs 300 crore

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In what analysts are calling as an action along 'expected lines', the Directorate General of Civil Aviation (DGCA) on Saturday suspended the license of debt-ridden Kingfisher Airlines until further notice. According to DGCA, the Vijay Mallya-led airline had been unable to provide a 'concrete revival plan'. Commenting on the regulator's move, Amber Dubey of KPMG told ET Now that there was a 'very slim chance' of Kingfisher Airlines bouncing back.

"If FDI in aviation by foreign carriers had been allowed 8-10 months back, it may have helped KFA," he said.

Sceptical of Kingfisher Airline's (KFA) claim of submitting a viable plan to restart operations, the aviation ministry and its agencies are going to turn the heat on the debt-laden carrier whose licence was suspended on Saturday.

The Airports Authority of India (AAI) says two of its hangars are occupied by KFA, whose combined debt-cum-losses figure is at Rs 15,000 crore. The authority will wait for some time before vacating them and shifting the aircraft to grass field at airports.

"One aircraft has already been shifted to a grass field at Chennai airport. We have locked the hangars and will not allow KFA to take away anything from the hangars. Two more hangars are with the airline and after a while we will vacate them too so that they can be rented out to others.

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