Pay before using facilities, AAI tells pvt airlines

New Delhi: Airports Authority of India has decided not to give credit to airlines. It will take a security deposit from private airlines based on the projected billing for two months. "This deposit is more than the actual billing and bolsters our efforts to get back dues," says an AAI source. AAI has a fortnightly billing with airlines and in case of consistent delay, takes up the issue with them. If airlines come with new schedules, routes and sectors, the security limit is increased.
And the security deposits with AAI in respect of private airlines is not small change (see box). Naturally, none would like to default with so much at stake. With steep fuel bills and thin margins, only those with deep pockets can survive. The government, too, has put in place measures to make operators financially stronger.
The equity base for private scheduled operators was raised from Rs 30 crore to Rs 50 crore with a minimum fleet of five planes within a year and that for those owning five small aircraft was doubled from Rs 10 crore to Rs 20 crore. But what if airlines don't pay up? They will not be given parking slots, says the source.
Even for non-scheduled carriers, including charters, AAI's system is cash-and-carry, ie, for each landing, cash is paid by the airline or its ground handling agent. Credit isn't allowed.
15/04/07 Shobha John/Times of India

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Categories: Airports Apr 2007, General Aviation Apr 2007