DGCA asks Kingfisher Airlines to clear employees' dues before take-off

NEW DELHI: The Directorate General of Civil Aviation (DGCA) has asked cash-strapped Kingfisher Airlines to clear employees' dues at one go before being allowed to resume operations. The airline's flying licence expired on Monday. 

Kingfisher Airlines submitted a third revival plan on December 24 to save its licence, but the aviation regulator found it unconvincing and demanded reassurances from the company besides setting many preconditions on December 29. 

"DGCA asked Kingfisher Vice-President Hitesh Patel to clear all employees' dues up front. It also demanded a letter of financial commitment from the UB Group and Kingfisher that it would invest 652 crore," a senior government official, who did not wish to be named, told ET. 

The lapse of its licence would deal a huge blow to the company and its employees, who are yet to receive salaries for many months in 2012. 

Airport operators like the Airports Authority of India(AAI) and GMR to whom Kingfisher Airlines owes hundreds of crores, will also have to give their consent before the stricken airline can resume operations. 

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