Debt-ridden Kingfisher Airlines hurtled towards a dead-end Friday,
grounding its fleet for another week days after the aviation regulator
sent a show cause notice to the management.
The airline said that
it was extending the lockout till Oct 20. The lockout was declared Oct 1
after negotiations with striking employees failed amid reports that
the airline was unable to pay full salaries to employees since its
lenders had refused fresh funding.
"The partial lockout declared
as a result of employee related issues is being extended until Oct 20.
At this time, the airline is hopeful of resuming operations starting
October 21," Prakash Mirpuri, vice president, corporate communications,
Kingfisher Airlines said in a statement.
The situation at the
airline has not improved even after the regulator hauled it up and
cancelled all 50 flights Oct 1, as employees went on strike demanding
payment by Oct 5 of their salaries pending since March.
Key
personnel like aircraft maintenance engineers, whose airworthiness
clearance is mandatory for any flight to take off, also struck work.
The
employees claim that non-payment of salaries has affected their morale
and built up stress levels that can also affect operational safety.
Meanwhile,
the Directorate General of Civil Aviation (DGCA), which had issued the
notice "as the airline has failed to establish a safe, efficient and
reliable service", said it was yet to receive any communication from the
company .
As per Section 15(2)(b) of Schedule XI of the Aircraft
Rules 1937, DGCA may cancel or suspend the permit of an airline if it
is satisfied that the permit-holder has failed to establish a safe,
efficient and reliable service.
The airline had the lowest market
share in August, which stood at 3.2 percent. The airline has a total
debt of Rs.7,000 crore with a consortium of banks.
According to a
report by the Centre for Asia Pacific Aviation (CAPA), Kingfisher
Airlines may have to shut down operations if $600 million is not infused
in it in the next two months.
The company reported a net loss of Rs.650.78 crore ($117 million) for the quarter ended June 30.
Currently,
the airline has only 10 operational aircraft from an earlier strength
of around 66 planes a year ago. It was also the country's second largest
airlines by passenger traffic.
