The shares of the company was locked in 5% lower circuit at Rs 10.90, lower by 4.80% on BSE.
On Saturday, DGCA suspended the Airline's permit after examining the Airline's reply received on 19.10.2012 to the Show Cause Notice served on them by the DGCA which was not found satisfactory.
DGCA has observed that the Kingfisher Airlines have not addressed any of the issues raised by the DGCA during the meeting held with the Airline on 02.10.2012 and the points raised in the show cause notice. They were asked to submit their operational preparedness plan for resumption of flight operations.
Instead, they have sought more time to file a reply to the show cause notice not indicating any time frame for submitting the detailed response; therefore, the request could not be acceded to by the DGCA.
Kingfisher also confirmed on receiving the notice and clarified that it is not cancellation but temporary suspension which is valid only till such time that we submit a concrete and reliable revival plan to the satisfaction of DGCA.
While, the company is meeting its employees today with aim to convince them to return back to work.