Airlines with no dues look for incentives

New Delhi: Days after oil companies gave a six-month reprieve to defaulting airlines for clearing their dues, other players - who paid on time -have now started talks with them to get some incentive. Last Wednesday, oil companies had given six months' time to clear Rs 2,926-crore dues owed mainly by Jet, Kingfisher and Air India-Indian Airlines combine NACIL.
"Since defaulting airlines have got relief, we have begun talks with oil companies to get some discount for our timely payments. Otherwise it is not fair that the ones who pay on time get nothing. At least the cost of money of getting payment should be deducted," said an airline chief.
The bailout for the big three has led to some heartburn among the other airlines. The six-month reprieve has prevented the closure of some big players as oil companies had threatened to stop supplies from this month-end if dues were not cleared.
Airport Authority of India (AAI) also has dues of Rs 653 crore and Rs 255 crore from the national carrier and Kingfisher, respectively, as on September 30, 2008. Jet is third highest on this list with a figure of Rs 36.63 crore. The combined oil and airport dues of Jet, Kingfisher and NACIL are over Rs 4,400 crore. Smaller players allege that the bailout package is being sought for the benefit of a few biggies, while the aviation ministry points out every airlines will benefit from something like cheaper jet fuel.
27/10/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Oct 2008