Kingfisher cuts flights, pulled up by DGCA for cancellations

Beleaguered Kingfisher Airlines on Wednesday announced it was curtailing its overseas flights to avoid further losses and also return of a leased aircraft even as the DGCA pulled up the carrier for regular cancellations.

The Directorate General of Civil Aviation(DGCA) said the failure of the airline to stick to its recovery plan and also its regular flight cancellations were a matter of "great concern" to both the public and the government.

The debt-laden airline's woes were further compounded with former tennis star Vijay Amritraj resigning as a director from the Board of Kingfisher Airlines, citing increase in his travel schedule and commitments.

As Kingfisher struggled to stay afloat, the airline said Mallya will tomorrow meet its pilots agitating over delayed salary that has disrupted flight schedules.

"We would like to confirm that we are curtailing our wide body overseas operations that are bleeding heavily," the the airline said in a statement.

It, however, did not clarify which international sectors will be affected and from when. It flies to eight overseas destinations including London, Dubai and Hong Kong.

The airline said it has returned wide body airbus A 330-200 aircraft to a lessor in the United Kingdom as part of a strategy to cut costs.

Reports on the airline operations are being submitted on daily basis to the Civil Aviation Ministry as flight cancellations have become regular, Director General of Civil Aviation E K Bharat Bhushan said.

"It a matter of grave concern to all including the regulator. I must say that it is matter of concern. Because, they had given us recovery plan for the airlines last month which they have not maintained," Bhushan told reporters in Hyderabad on the sidelines of Aviation India-2012.

"The situation cannot go on like this. Yesterday, they flew 98 flights. As I said, the situation cannot go on like this. It is causing lot of distress to the lot of travelling public which is matter of concern for us," he added.

Civil Aviation Minister Ajit Singh said government will not bail out Kingfisher, asserting it was the responsibility of the airline's promoter to pull out of the crisis.

"The Government cannot and will not bail out private companies, but that does not mean we want private airlines to close down," Singh said at a press conference in Hyderabad.

It was for Kingfisher promoter Vijay Mallya to marshal funds to bring the carrier out of the crisis, he added.

Singh also said DGCA would submit its report on Kingfisher in a couple of days.

Last month, the company had informed the authorities that it will be operating 140 flights daily.

However, Kingfisher said that 'despite the shortage of crew' it operated 101 flights yesterday and will operate 101 flights today.

Maintaining that its liquidity crunch was primarily caused by tax authorities freezing its bank accounts, the airline said "We are also working with our bankers to realise the urgent interim working capital as approved in the Bankers Consortium meeting held on February 17."

"Whilst many of our pilots and engineers have expressed their disappointment, we not only sincerely apologise to them but wish to advise that our Chairman will meet the pilot fraternity on Thursday, March 15 in Delhi," it added.

The airline, which has debt of Rs 7,057.08 crore, is struggling to stay afloat in the face of employee protests over delay in salaries.

"We are trying to protect the interests of our valuable employees. We share their pain caused by unpaid salaries and we are also trying to protect their jobs apart from paying salaries," it said.

Besides, the statement said, "We continue to work with the tax authorities to arrive at a solution to de-freeze our accounts as early as possible.

Replying to a query on the possible action against the airline, Bhushan said authorities are assessing the situation and act when the situation demands.

"I cannot speculate (on action against Kingfisher) at this point of time. It involves lot of passengers. It involves lot of employees. We will meet the situation as and when it happens," he said.

In a filing to the Bombay Stock Exchange(BSE), KFA said, "Vijay Amritraj has, because of increase in his travel schedule and commitments that will prevent him from attending any board meetings in 2012-13, resigned from the board of directors of the company."