India's Directorate General of Civil Aviation (DGCA) issued (05-Oct-2012) a show cause notice to Kingfisher Airlines, to be replied to within fifteen days, as to why its operating certificate should not be cancelled or suspended as it has failed to establish a safe, efficient and reliable service under the provisions of relevant legislation. The carrier's operations have been suspended since 30-Sep-2012, due to employee industrial action. Minister of Civil Aviation Ajit Singh said he will permit no compromise on safety of aircraft operations. DGCA stated that Kingfisher Airlines has not approached them with any operational plan and has not been able to resolve its issues. The carrier's spokesman Prakash Mirpuri stated (07-Oct-2012) the airline intends issue a detailed response to the DGCA's show cause notice within the allotted 15-day time period. Kingfisher Airlines intends to issue a “comprehensive plan for restoration of services after negotiations with our employees”. The DGCA has asked the carrier to provide operational and safety plans and justify why it should not be shut down. The airline extended a temporary shut-down of operations to 12-Oct-2012, after failing to reach agreement with striking workers. It ceased flight operations on 30-Sep-2012. The carrier has been unable to pay employee salaries for seven months and is negotiating with banks to unlock frozen accounts. [more - original PR - Kingfisher Airlines] [more - original PR - Civil Aviation Ministry] [more - Full Show Cause Notice]
India DGCA issues show cause notice to Kingfisher Airlines over possible suspension
You may also be interested in the following articles...
Northeast Asian airlines seek India connections to diversify away from SE Asia, China competition
Aviation has yet to define India’s role in the trans-Pacific growth story. Geography allows connections from North America to India via Europe, the Gulf and – more quietly – Northeast Asia. Northeast Asian airlines have a theoretical advantage linking India with the North American west coast. The challenge they face is fitting a square peg into a round hole.
The presence of Northeast Asian airlines is large in North America but small in India, while Southeast Asian airlines are small in North America but large in India. Cathay Pacific, and to a lesser extent All Nippon Airways, are in the strategic sweet spot, relatively. Growing China-India relations could result in Chinese airlines playing a larger role in this market. The different transit regions available mean that there is competition between partnerships and joint ventures. These pressures could grow as the Indian market continues expanding.
CAPA Airport Finance & Privatisation Review 2015/2016. The day has come for PPPs
CAPA's 170-page "Global Airport Finance and Privatisation review 2016 – the day has come for the PPP" is is the fourth in a series of CAPA reports on airport privatisation and investment published since Jan-2015.
During that time a number of deals have been concluded and announced across the world though their volume remains below the levels prior to 2008. One of the key trends is an identifiable increase in activity in public-private partnerships (PPPs) globally.
In a world where obtaining a viable return on investment remains a difficult task it is evident that investor sentiment once again favours long term transport infrastructure. Airports are among the well tested models for investment.