Domestic airlines owe huge money to AAI too

New Delhi: It’s not only Oil PSUs which have to settle their dues from airlines, even the Airports Authority of India (AAI) is standing in the recovery queue with outstanding claims worth approximately Rs 1,011 crore in lieu of services rendered, according to the data released by civil aviation ministry in the Parliament today.
The state-carrier National Aviation Company of India Ltd (Nacil) accounts for more than 60 per cent of total outstanding amount at Rs 653.10 crore. Of this amount, international carrier, Air India owes AAI less than Rs 100 crore, with the rest of the amount due from the domestic carrier, Indian, an official source told The Indian Express.
It is learnt Air India and AAI are entangled in a dispute over land and building rental. Air India has raised questions over the rate and area under measurement of rented property, and has also opposed revision by 5-10 per cent in rentals by AAI, said the source.The ministry has resorted to arbitration to settle dues of the NACIL.
AAI charges airlines for providing services like landing and parking of aircraft, in addition to renting out land and building to airlines for providing engineering facilities and office space. Typically, airlines are to settle their dues within 30 days, a period which has been breached by most, informed the official.
24/10/08 Smita Aggarwal/Indian Express

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Categories: Airports Oct 2008, Indian Aviation- In General Oct 2008