Kingfisher loses licence to fly

INDIA’S Directorate General of Civil Aviation suspended Kingfisher Airlines’ air operator's certificate on Saturday after the debt-laden carrier failed to meet the regulator's concerns about its operations.

Kingfisher’s fleet has been grounded since October 1, due to an ongoing strike by its employees over unpaid wages.

Afflicted by debts estimated at US$2.49 billion by the Centre for Asia Pacific Aviation, analysts are doubtful that a buyer will emerge to bail out Kingfisher – which has yet to make a profit since launching in 2004.

With Kingfisher’s absence from Indian skies, airlines such as IndiGo, SpiceJet and Jet Airways have started operating additional sectors to make up for the sudden reduction in capacity.

Rajendra Churiwala, director - eastern region, IATA Agents Association of India said: “The other carriers have to fill up the seat capacity on routes in demand, without exploiting the customers with inordinately high fares during the upcoming festive and peak seasons.”

Sourced: TTG Asia