Asia Bizz: Vijay Mallya, the chairman of Kingfisher Airlines, is expected to meet the DGCA on March 20, 2012 to try and find a solution for the ailing airline. At the meeting, Mallya is expected to present plans on how to revive the company.
Reports say that there are high chances that the license of the airlines could get canceled. The airline is also being threatened by the income tax department that it would move to the court for non-payment of dues.
The move has come as the 15 day notice period to Kingfisher Airlines has expired and has left the government concerned about the scaling down of services. The schedule of the airline for summer has been reduced to just 16 of its 64 aircraft.
Even the Union Civil Aviation minister Ajit Singh said that the airlines cannot function like this. Many of the Kingfisher Airlines bank accounts have already been frozen for the non-payment of dues worth Rs 76 crore, which also includes arrears and interests. Even the IATA accounts have been frozen. Meanwhile the Service Tax Department has taken Kingfisher Airlines to the court under the sections 76 and 78 of the Finance Act. At present the airline has a debt of Rs 7,057.08 crores.
Moreover, the employees of Kingfisher Airlines have been facing the brunt of the company’s non-payment of dues and have not received their salaries for the past 3-4 months.
