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New Delhi: The revival of Vijay Mallya’s Kingfisher Airlines Ltd is not feasible, consulting firm Capa-Centre for Aviation has said, downgrading its October estimate of flight resumption if $1 billion is infused.

“Kingfisher revival chances are not realistic and feasible," said Capa’s South Asia CEO Kapil Kaul in reply to questions from Mint, indicating for the first time that the airline may never make it back to the skies.

The airline owes $1.5 billion to banks and dozens of other creditors.

“The decision to start recovery by banks is likely to take the Kingfisher case to its logical conclusion, but I continue to believe that recovery will be a long-drawn process and will require a big hair cut," he said. Kaul added, “No time frame can be set. Expect Kingfisher to pay some of the employees dues and clear all statutory dues."

It was not clear if the statutory dues also include the personal guarantees of Mallya.

In October, Capa had estimated that atleast $1 billion would be required to restart the airline on a viable basis.

“Kingfisher’s greatest chance of success is likely to lie in a decisive and well-funded resumption of services but this is looking less likely," it had said in its 23 October report.

The airline has since been grounded and its licence lapsed on 31 December.

Kingfisher won’t get its flying licence back until it settles repayment issues with all creditors, including banks, the government told the Parliament on Wednesday.

“The AOP (air operator permit or airline licence) of KFA... has been suspended by DGCA (Directorate General of Civil Aviation) with effect from 20th October 2012 and till such time the airline submits its revival plan which... should indicate as to how it proposes to pay the dues of its operators, oil companies, bank, etc," civil aviation minister Ajit Singh told Parliament.

Kingfisher Airlines has 3,000 employees on its rolls who have not been paid for more than six months now.

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