Why Vijay Mallya's Kingfisher Airlines is still not grounded - The Economic Times: "In a statement, the ministry said an airline's operating licence cannot be cancelled anywhere in the world for merely failing to pay salaries and therefore, Bhatia's comments are "uncalled for and baseless".
What the Rules Say
The ministry has based its argument on a DGCA rule that allows an airline to operate if it possesses five aircraft and has a paid-up capital of at least Rs 50 crore. For more than a year, Kingfisher has been cancelling scores of flights. It is carrying a debt of more than Rs 7,000 crore and liabilities of over Rs 4,000 crore.
It has terminated international flights. Once India's second-largest airline, its market share has shrunk to 5.4%, the smallest among Indian carriers. Lessors have been confiscating its aircraft, significantly reducing its fleet of 64 since last September. But Kingfisher still operates 16 planes.
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What the Rules Say
The ministry has based its argument on a DGCA rule that allows an airline to operate if it possesses five aircraft and has a paid-up capital of at least Rs 50 crore. For more than a year, Kingfisher has been cancelling scores of flights. It is carrying a debt of more than Rs 7,000 crore and liabilities of over Rs 4,000 crore.
It has terminated international flights. Once India's second-largest airline, its market share has shrunk to 5.4%, the smallest among Indian carriers. Lessors have been confiscating its aircraft, significantly reducing its fleet of 64 since last September. But Kingfisher still operates 16 planes.
"
'via Blog this'
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