License of Kingfisher Airlines Suspended Indefinitely

DGCA has suspended the license of Kingfisher Airlines with immediate effect, i.e., w.e.f. 20th October 2012.

According to a notification issued by the DGCA, the suspension would remain in force till Kingfisher submitted a concrete and reliable plan for its revival.

Kingfisher Airlines

The indefinite suspension of Kingfisher’s license is expected to result in a spurt in the air fares of other airlines.According to Jitender Bhargava, a former Executive Director of Air India “Other airlines have already taken a long term view on fares and now they are already high. Now without Kingfisher, they will go up further. It will be bad days for passengers.” However, Ankur Bhatia, Director of Amadeous India took a contrary view. He said that the fares are not expected to go up since the operations of Kingfisher had been very much scaled down for sometime now.

Hiked fares or not, travelling public are bound to face difficult times ahead.

But the real nightmares await Kingfisher’s employees, shareholders, and creditors.

Kingfisher Airlines has accumulated losses of about Rs 8,000 crores and a debt of more than Rs 7,500 crores.

According to industry experts, about Rs.3000 crores have to be infused into Kingfisher to make operations possible again and its revival could cost about a billion dollars.

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