* Carrier has not flown since start of month
* Staff agreed on Thursday to return to work
* Shares rise by daily limit for second straight session
(Adds details, quotes, background)
By Arup Roychoudhury
NEW DELHI, Oct 26 India's Kingfisher Airlines
Ltd, which had its licence suspended last week, will
use its own money as it tries to resume flying, India's air
regulator said on Friday, a day after the grounded carrier
persuaded striking staff to return to work.
The aviation regulator also said Kingfisher would need
approval for a revival plan from, among others, oil companies
and airport operators, which have struggled to collect money
owned by the cash-strapped airline.
Kingfisher, controlled by liquor baron Vijay Mallya, has not
flown since the start of this month after a protest by
employees, unpaid since March, turned violent. On Saturday, the
Directorate General of Civil Aviation suspended the carrier's
licence over safety concerns.
Kingfisher, which was India's second-largest carrier before
financial woes forced it to ground most of its fleet earlier
this year, has been scrambling without success to find investors
to bring in fresh capital.
"He (the regulator) said that the DGCA would like to get
satisfied that all major stakeholders like airport operators,
oil companies, MRO (maintenance and repair organisations), AAI
(Airports Authority of India) are taken on board for supporting
the airline's revival plan," the DGCA said in a statement after
a meeting with Kingfisher CEO Sanjay Aggarwal.
"The CEO further informed that at present, the source of
funding for the airline will be through their own resources,"
the DGCA statement said.
The carrier has yet to submit a revival plan with the
Kingfisher lobbied for a recent Indian rule change that
allows foreign carriers to buy up to 49 percent of an Indian
airline, but no carrier has publicly expressed interest in
taking a stake.
Founded in 2005, Kingfisher has never turned a profit and
its total debt is estimated at about $2.5 billion by the Centre
for Asia Pacific Aviation (CAPA), a consultancy.
Kingfisher's shares rose 4.61 percent, effectively their
daily limit of 5 percent, in line with gains made on Thursday
after dropping by their limit for four consecutive sessions.
On Thursday, staff agreed to return to work after the
airline said it would pay three months of overdue salary by Nov.
13, and a fourth month by the end of the year.
(Editing by Tony Munroe and Daniel Magnowski)