Kingfisher's dues with AAI at Rs 200 cr

Mumbai: In what is a sign of increasing financial crunch faced by Indian carriers, Vijay Mallya-promoted Kingfisher Airlines has outstanding dues of around Rs 200 crore with the Airports Authority of India (AAI). The sum does not include the money the airline owes to private airports across the country.
Though private airports did not spell out the exact sum owed by Kingfisher, in strict confidentiality one of the private airport operators confirmed that the airline was the biggest defaulter with them.
“In the past week, Jet Airways has paid us its dues but Kingfisher still has Rs 200 crore as outstanding with us,” said a well placed aviation ministry official. Jet owed Rs 400 crore to AAI.
Airport charges include landing, parking, terminal and route navigation levy. Though AAI has enforceable bank guarantees, private airport operators do not have this facility.
It is to be recalled that there had been some media reports about state-owned oil marketing companies too issuing ultimatums to airlines to pay up their dues in a few weeks or face fuel supply disruption.
A Kingfisher spokesperson said, “....The position with regard to outstanding has to be viewed keeping in mind that AAI is already in possession of enforceable bank guarantees to the extent of 100 per cent of the mutually agreed credit limits."
11/10/08 Manisha Singhal/Business Standard

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Categories: Airports Oct 2008, Kingfisher Oct 2008