The government said it will give away Kingfisher Airlines' (KING.NS) slots and foreign flying rights to other operators in the latest blow to the grounded carrier.
Kingfisher, controlled by liquor baron Vijay Mallya, has been halted due to a cash crunch, and lenders are trying to recover $1.4 billion of loans in default.
According to Reuters, Kingfisher, which saw its flying license expire at the end of last year, has two years from then to apply for a renewal. But with lenders, airports, and banks looking to recover their dues, and with its slots going to rivals, a comeback could prove extremely difficult for the airline, once India’s no.2 carrier.
The civil aviation ministry said in a statement it will make the slots and flying permits available to other airlines.
Kingfisher, whose planes have been idle since October, flew to Hong Kong, Singapore, Thailand , United Kingdom, UAE among eight others.
Indian carriers will now have an additional 25,000 seats available each week to fly to these countries, the statement said.
Kingfisher posted a 7.55-billion-rupee loss in the three months to December 31 as its planes sat idle, and regulators rebuffed its revival plans.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
