TNI Bureau: Cash strapped Kingfisher Airlines has lost its permit on Monday to fly after a deadline to renew its suspended licence expired.
The news is a fresh blow for the debt-laden carrier whose operations have been grounded since October after employees went on strike over unpaid wages.
The airline’s flying licence, which was suspended in October after a workers’ strike, was scheduled for renewal on December 31, 2012.
The non-renewal of permit is not the end for Kingfisher as the airline can apply for renewal of licence within two years.
However, as per Monday’s development, the airline has become defunct, as it is no more a scheduled operator.
Nevertheless, Kingfisher Spokesman Prakash Mirpuri said in a statement that there is no cause for concern as the rules allow for the renewal of a permit within two years of expiry.
Kingfisher, controlled by liquor baron Vijay Mallya, owes millions of dollars to banks, airports, fuel suppliers and its staff and has been looking for a foreign investor to inject more funds.