Kingfisher Airlines locked in lower circuit on licence suspension talks

NEW DELHI: Kingfisher Airlines Ltd dropped 5 per cent in trade on Friday and was locked in lower circuit on reports the crisis-ridden airliner could be on the verge of having its flying licence suspended.

At 12:20 pm, the stock was locked in lower circuit at Rs 11.45, down 4.58 per cent. The stock has lost nearly 30 per cent so far in the month of October. Ajit Singh hinted to media persons that the regulator may suspend or cancel the company’s flying licence.

Kingfisher Airlines, which has been grounded since October 1, stands to lose its flying permit if it fails to explain to aviation regulator Directorate General of Civil Aviation (DGCA) its abrupt cancellations of flights and non-adherence to schedule in the past.

“Friday is the last day they have to respond to the show-cause notice sent to them (Kingfisher Airlines) by the DGCA. If they don’t do so, we won’t give them any extra time and their licence may be suspended,” said an ET report quoting a senior official from the civil aviation ministry.

Earlier in the week, the sector watchdog DGCA did not approve the Vijay Mallya-owned carrier’s winter schedule.

Sector experts in an ET report said that the licence may be suspended on an ad hoc basis, as the grounded carrier can’ fly between October and March, which is the entire duration of the winter schedule, without the said approval.