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Monday 19 March 2012

Kingfisher in Trouble

20th March 2012,Tuesday

The aviation regulator on Monday summoned Vijay Mallya, the billionaire owner of debt-laden Kingfisher airline, to seek an explanation on why his carrier can't stick to its revised schedule. Sources familiar with the regulator's thinking said there was a real possibility that Kingfisher's licence could be suspended if it was not able to get its act together.

The meeting could happen either on Tuesday or later this week. Sources said that the aviation regulator Directorate General of Civil Aviation (DGCA) had sent a show-cause notice to Kingfisher Airlines late February, asking why the airline should not be shut down.

"The DGCA had given the airline 15 days to respond, but now it is well over that time and the airline has not responded. To be able to take a final view of the situation, the regulator wants Mallya to explain the situation before deciding on a course of action," a government source said, requesting anonymity.

The civil aviation ministry and the DGCA are trying to come to a consensus on the issue as the regulator is of the opinion that harsh ssteps such as suspension of licence may become inevitable, said the government source.

"Delay in salary payment, lack of schedule integrity, passenger inconvenience and failure to stick to the recovery plan are some of the various grounds on which the licence could be suspended," the official said.

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