Kingfisher Airlines has lost their license on Monday so they are now unable to operate. The Indian Airline was told by the Indian government's Directorate General of Civil Aviation (DGCA) that they must pay their employees for their salaries that are past due in order to start operation again.
"Kingfisher's flying permit has lapsed," DGCA chief Arun Mishra said to AFP.
The airliner based in Mumbai has not been in operation since Oct, when their pilots and engineers went on strike.
"They failed to provide additional details on the funding of operations," Mishra added to AFP.
CNN reported that the company has a debt of $2.5 billion. "Despite the impending expiry of its License tonight, there is no cause for concern as the regulations permit License renewal within two years of expiry," they said in a statement on New Years Eve "Kingfisher Airlines is confident of securing approval from the DGCA on the restart plan, License approval and reinstatement of its AOP."
Kingfisher is controlled by Vijay Mallya who is a liquor baron. Spokesman Prakash Mirpuri said to the Times of India, "They failed to provide additional details on the funding of operations."
"Kingfisher is confident of securing approval from the regulator on the restart plan, licence approval and reinstatement of its operating permit," Mirpuri added.
Kingfisher was India's second-largest carrier until last year. They said they have been in talks with Abu-Dhabi based foreign investors from Etihad Airwats.
"Aviation analysts have expressed doubt over Etihad's purported interest in Bangalore-based Kingfisher given the Indian firm's debt load, which is estimated at $2.5 billion by the consultancy firm Centre for Asia Pacific Aviation," the Times of India reported.