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!
- Kingfisher Update [Updated!]: Expecting to fly in 5 days?
- Kingfisher fiasco expected to be a long drawn one?
- Kingfisher: its not over yet?
- My previous coverage of the Kingfisher Airlines and disruptions