Kingfisher Airlines has submitted a time-bound recovery plan to the Directorate General of Civil Aviation (DGCA). This plan is in response to the findings of Financial Surveillance Test conducted by regulator last month.
A Kingfisher spokesperson confirmed submission but refused to give details. However, according to a source, the plan hinges on additional funding planned on the basis of a long-term business plan report prepared by SBI Caps. The airline expects additional funding latest by March, 2012.
The parent group UB will continue to provide financial assistance. The airline is expected to operate all the aircraft if bank funding comes by March 31, 2012, the source added.
According to the aviation regulator, it has 60 aircraft in its fleet, of which 21 are grounded. These planes have been grounded due to changes going on in configuration, lack of spares or other reasons. Due to grounding, the airline has cancelled 175 flights out of its winter schedule of 418 flights.
The airline expects all 5 Airbus 320 type of aircraft to be operational by June, while the remaining 16 ATR aircraft will be operational in the coming months. The airline operates a mix of Airbus 320, Airbus 330 and ATR planes.
According to the report filed with DGCA, the airline said 60 per cent of its employees have been paid salary while remaining will get paid by January 15. The company has assured payment of December salary for all its employees by January 31.
The Director-General of Civil Aviation, Mr E.K. Bharat Bhushan, has already said that a “specific and realistic” time limit will be given. “We will closely watch the implementation of plan and in the event of non-compliance, various options are available with us,” he had earlier stated.
Under the present regulations, the options include curtailment of operations, allowing operations according to inventory of engines and spare parts and as alast resort, cancelling the operator's permit to fly.