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Kingfisher faces shutdown

Airline declares partial lockout; may lose licence to operate
Last Updated 01 October 2012, 20:38 IST
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The cash-strapped Kingfisher Airlines is staring at an uncertain future with prospects of a shutdown looming large, as the Directorate-General of Civil Aviation (DGCA) summoned CEO Sanjay Agarwal for a review of its operations and safety measures.

 Agarwal is likely to meet DGCA chief Arun Mishra on Tuesday.

Civil Aviation Minister Ajit Singh on Monday gave enough hints on the government’s plans for the carrier, saddled in debts at present, as he said the ministry will consider a shut down if the fleet size drops below five from the present seven and “airworthiness was in doubt.”

For an aircraft to take off, engineers have to certify it as “airworthy.” Mishra told reporters: “We will review the situation of the Kingfisher Airline. The situation of the airline’s operations will be reported to and discussed with the ministry. We are monitoring the situation.”

Meanwhile, the carrier late on Monday night declared a partial lock-out with immediate effect and suspended till Thursday flight operations which came to a grinding halt following a strike by a section of its employees.

In a statement, the Vijay Mallya-owned carrier said it has been forced to declare a “partial lockout” following a series of “protracted and unabated incidents of violence, criminal intimidation, assault, wrongful restraint and other illegal acts” including refraining from attending work, by a small section of “recalcitrant” employees.

The airline said the action by the employees resulting  in a complete paralysis of operations were all “unnecessary and unprovoked.”

The aircraft maintenance engineers launched a strike on Friday and pilots progressively joined. The employees struck work demanding immediate payment of salary, due for six months now. The airline, which had a fleet of 64 aircraft not long ago, is reeling under a debt of Rs 7,000 crore.
 

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(Published 01 October 2012, 14:30 IST)

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