Kingfisher Airline summoned by DGCA

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DGCA summons KF CEO, says passengers first

The Directorate-General of Civil Aviation (DGCA) summoned the CEO of Kingfisher Airlines, Sanjay Aggarwal, and ordered the airline to accomodate passengers, affected by cancelled flights, with other airlines.

DGCA summons KF CEO, says passengers first

The DGCA response came after Kingfisher cancelled 17 flights on Monday, for a third day in a row, from Bangalore and Mumbai and also rescheduled two flights. The airlines had also cancelled 28 flights on Sunday, February 19.

Meanwhile, Civil Aviation Minister Ajit Singh said in response to the crisis that there were no plans to bail out the troubled airline. The airline must talk to the banks and sort the issue out, he added.

Earlier, Kingfisher Airlines (KFA) officials, despite repeated attempts, declined to confirm or deny the developments. Instead, they repeatedly said that “we shall issue a statement when required” and refused to comment on the potential action by the DGCA.

The cancellations have affected incoming or outbound flights in Mumbai, New Delhi, Chennai and Bangalore.

The abrupt flight cancellations had created major problems for passengers waiting to travel after having booked their tickets months in advance, an official at the Chhatrapati Shivaji International Airport said.

However, Sunday, the beleaguered carrier reeling under financial losses had claimed that despite flight disruptions since the past couple of days, it has not shut down any stations from its schedules, an official said.

The developments have also worried passengers intending to travel on KFA flights in the next few days or weeks.

“Last minute cancellations jeopardize our travel and onward plans, while other carriers charge heavily for the same sector if we try to cancel and make alternate bookings,” said A.A. Kinariwalla, a manager with a multinational in Mumbai, who is a frequent flier on domestic and international sectors.

A KFA spokesperson blamed the flight disruptions on certain unexpected incidents like ‘bird hits’ which rendered its aircraft out of service.

The flight disruptions are expected to continue for another three to four days with only 208 flights in operations, but the carrier has not shut down nor does it plan to close down any stations, the official said.

‘The speculation that we are reducing our operating schedule from 240 flights a day are ill-founded, as we will operate the full schedule on our booking system within the next four days,’ the spokesperson added.

While admitting that its bank accounts have been attached by the Income Tax Department, KFA said in the past also similar issues have happened and they have been resolved.

‘We have had a good meeting with our consortium of Banks who have accepted, in principle, the viability study prepared by SBI Capital markets and independent consultants. Our request for additional working capital has been acknowledged by the consortium and is subject to individual bank approvals,’ the spokesperson said.

The developments come after high fuel costs and falling revenue resulted in KFA losses in the third quarter of the current fiscal mounting to Rs.444 crore from a net loss of Rs.254 crore suffered in the like quarter of 2010-11.

Source: India Syndicate

EU Green Tax: Global Airlines Warn Of ‘Retaliatory Action’

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‘Retaliatory Action’

With European Union facing global flak over imposition of a green tax on all aircraft flying in its skies, world airlines’ body IATA has warned European airlines of “retaliatory action” by non-EU nations if a global solution was not arrived at soo

EU Green Tax: Global Airlines Warn Of 'Retaliatory Action'

“Time is not on our side. Airlines from Europe may face some retaliatory action. And some non-European airlines may have to choose whether to obey the law of their land or that of Europe ?- two more unintended consequences which should convince all states that the ICAO (International Civil Aviation Organisation) is the way forward,” IATA chief Tony Tyler said.

He called for a global solution through the ICAO, a UN-body, to break the impasse on Europe’s plans to “unilaterally” include global aviation in the EU Emissions Trading Scheme (EUETS).

India, Russia, the US, China and several other countries would meet in Moscow later this month to decide on whether to take retaliatory measures against the EU on its “unilateral” decision to impose carbon tax on air travel.

The EU imposed the tax from January, but about 30 countries, including India, Russia, China and the US, opposed the move, saying it was “inconsistent with the international legal regimes”.

In a speech to the European Aviation Club in Brussels yesterday, Tyler said the consequences of the “unilateral and extra-territorial approach go beyond market distortions to states seeing this as an attack on their sovereignty.”

“I am sensing a growing recognition that a global scheme developed through the ICAO would provide a superior solution both for managing aviation’s emissions and to resolving the political problems caused by extending the scheme beyond Europe’s borders,” the IATA Director General and CEO said, adding, “We will do all that we can to promote a pragmatic solution.”

Source: PTI