Civil Aviation Minister Ajit Singh also expressed doubts whether the carrier, facing a partial lockout, will be able to fly from Friday.
Ailing Kingfisher Airlines will have to satisfy aviation regulator DGCA about safe flight operations and also make sure that its employees are not disgruntled before it resumes its services, Civil AviationMinister Ajit Singh said.
The airline management, in an internal mail, said that due to operational reasons, all flights across its network would be cancelled until next weekend
The striking pilots are now planning to move the labour court against the airline for failing to pay their backlog.
SBI has over Rs 1,500-crore (Rs 15-billion) of exposure to Kingfisher.
SBI has already exceeded the exposure limit of Rs 1,436.1 crore (Rs 14.36 billion) in Kingfisher.
Pratip Chaudhuri, SBI chairman, feels that the airlines should bring the amount to the table.
Bankers and the senior management are expected to convene another meeting later this month.
Kingfisher has a total debt of about Rs 7,057 crore (Rs 70.57 billion) and accumulated losses of about Rs 6,000 crore (Rs 60 billion).
Even before the holiday season has begun, all airlines have jacked up their fares on many busy air routes by 10-25 per cent over the past few days.
The permit was suspended by DGCA on October 20.
Kingfisher Airlines on Tuesday decided to suspend all international flights from March 25 and further curtail domestic operations even as government warned the ailing carrier that its flying licence can be cancelled if it failed to meet safety norms.
The recent suspension of the ailing airline's licence have hundreds of people making enquiries at Kingfisher's office in Dubai and other travel agents, none of whom are able to give a solution to the troubled passengers.
FIIs, on the contrary, have been exiting the stock.
Move follows income tax department's decision to lift freeze on some bank accounts
The airline is expected to submit a fresh flight schedule to the DGCA.
The suggestion comes within days of reports that LIC and the Employee Provident Fund Organisation snapped up the entire Rs 7,400-crore (Rs 74-billion) bond issue of the debt-ridden Air India.
Government-owned and financially ailing AI has been dropping its economy class fares to the level of low-cost carriers.
Reacting to the buzz, shares of the grounded-carrier tanked 4.86 per cent to Rs 2.74 -- its lower circuit limit on the BSE.
A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw issued notice to the airline and the central government seeking their replies within a week on PNB's plea.
The office of former prime minister Manmohan Singh may have taken a special interest to try and keep afloat Vijay Mallya's ailing Kingfisher Airlines against the run of play, e-mails and letters claiming this and accessed by CNN-News18 indicate.
A bench of Justice Vibhu Bakhru, which later decided to hear the matter on Thursday again, also said that the ailing airlines can be allowed to be represented by a lawyer in the proceedings to be conducted by the PSU bank against it.
It was not a smooth sailing for the Indian aviation industry in 2012 as it saw the grounding of Kingfisher Airlines and financial trouble hitting Air India and other carriers besides a prestigious $500 million airport upgrade contract bagged by a leading Indian infra firm being terminated by the Maldives government.
India must address issues that are plaguing its aviation sector.
Naresh Goyal only gave an undertaking not to sell any of his 51% stake in return for raising working capital debt from PNB.
The insolvency and bankruptcy code will strengthen the hands of lenders to recover outstanding debts by setting a deadline of 180 days for companies to pay or face liquidation
Banks have been patient and flexible in rescheduling loans.
Bankers back the new bankruptcy code, which would impose debt deadlines on failed firms and foresees up to five years in jail for debtors who conceal property or defraud creditors
Though SpiceJet is likely to resume flights, experts have a doubt on the airline's financial capabilities.
Analysts say strengthening bank's capital will boost earnings, bank needs chief with long stint to run show
The changes would be the most ambitious overhaul to date of rules governing the liquidation or revival of companies in India.
RBI governor Raghuram Rajan is clear about cleaning up the mess in the banking system.
Few top honchos of India Inc did very well in 2014.
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