Finally, Kingfisher’s license maybe at stake

Since the past ten months, Kingfisher Airlines has been in crisis mode and it has only grown worse over the months. Since the last weekend, there has been industrial action at the airline for the nth time, and the management grounded the shrunk fleet, first till October 4th and then till October 12th.

All these days, it seemed the influential promoter was getting a free hand because of the political connections he had, and because the airline is too big to fail for all the banks who have doled out the debt to the airline in good times. At numerous times, the aviation ministry clarified, including earlier this week, that the airlines’ license is not at stake.

However, there are now news reports emerging that the civil aviation regulator in India is now looking for legal opinion to see if the airline’s license can be cancelled or not. This might be a move in the right direction, but it will cost a lot of jobs and force the banks to write off a whole millions of $.

As an aside, the airline did manage to get access to some of its accounts, where about $12 Million (Rs. 60 Crores) are available. Hopefully they will do the right thing and pass these off to employees right away!

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About Ajay Awtaney

Ajay is a financial services pro, working to bring order to the chaos of the financial industry on an everyday basis! Beyond that, he dons the hat of India's favourite frequent traveller, trying to help people elevate their travel experience via tips and tricks they never knew before, or introduce them to the world of miles and points. Armed with an MBA from MDI Gurgaon and graduate degree in computer science from the University of Delhi, Ajay brings a systematic and objective approach on the table for his audience in dissecting travel and loyalty programs in India and around the world, and how to benefit from them. Ajay has been quoted in various reputed traditional and online media including The Hindustan Times, Inside Flyer, Bloomberg, DNA India, Conde Nast Traveller, The Telegraph, Mumbai Mirror, Mint, MoneyLife and The USA Today.

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