Parent group (UB) to fund Kingfisher revival

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Parent group to fund Kingfisher revival
TIMES NEWS NETWORK

New Delhi: With no funds flowing from any quarter like bank loans or equity infusion through FDI, Kingfisher Airlines CEO Sanjay Agarwal on Friday told DGCA chief Arun Mishra that the airline would be supported financially by the parent UB Group.
This assurance came when Mishra asked how the cash-strapped airline management planned to run sustainable operations when Agarwal came calling a day after Kingfisher employees decided to end their strike.
The DGCA also directed Agarwal to take into account stakeholders — various other unpaid agencies like airports, tax department, oil companies and other vendors — while preparing a plan. He would be speaking to these agencies before taking a call on whether Kingfisher Airlines, whose licence was suspended last Saturday, can be trusted with restarting operations.
Mishra made it clear that Kingfisher would have to convince him that it has the finances to run the airline uninterrupted. “Mere promise won’t do as in past year Kingfisher’s operations happened in fits and starts. This was conveyed to Agarwal very clearly. Kingfisher will be allowed to fly again only if it can safely adhere to its timetable,” said sources.
After meeting Mishra, Agarwal said: “It was a general meeting. We had a discussion with the DGCA to get a better understanding about presenting the revival plan (of the airline). We will get back to them very soon. No time-frame has been specified.”