After failing to receive a response from Kingfisher Airlines on its show-cause notice issued on October 5,the Directorate General of Civil Aviation (DGCA) Saturday suspended its flying licence.
The aviation regulator had given Kingfisher until Saturday to explain why its licence should not be cancelled.
The licence of Kingfisher has been suspended until further orders. The issue of dues between the airline and employees and various vendors is a matter between them and does not come under our regulatory purview, DGCA head Arun Mishra told The Sunday Express.
Civil Aviation Minister Ajit Singh said the licence had been suspended for safety reasons,and should it fail to satisfy DGCA that it could fly safely,the next logical step could be cancellation of the licence.
It all depends on Kingfishers revival plan to DGCA, Singh said. Safety cant be compromised.
Experts said DGCAs move would not significantly impact the market because Kingfisher has not been flying for three weeks now. Kingfisher cannot take bookings in any form now,and will have to refund passengers booked on its flights.
Kingfishers only hope lies in its managements ability to persuade employees to return to work if three months salaries are paid. Employees were earlier demanding six months salary.