AAI refuses to play ball on dues

New Delhi: A month back, civil aviation minister Praful Patel worked his charm on oil marketing companies to wrangle several concessions for ailing airlines, including the flexibility of repaying fuel dues in equated monthly instalments (EMIs).
It seems, however, that Patel has not been able to persuade the Airports Authority of India (AAI), a body very much under his command, to follow suit. According to sources, there is still no concrete proposal with the ministry, which would suggest that AAI allow airlines to clear their airport dues in a staggered manner.
Besides, the ministry has also not agreed to airlines’ demands of reducing airport charges — which include landing and parking fees, navigation and other charges — to help them tide over the present financial crisis.
These sources indicated that the matter of AAI dues - which amount to well over Rs 2,500 crore - is getting trickier by the day since they continue to pile up and no mechanism has been evolved to address the issue.
This situation prevails even as Kingfisher chief Vijay Mallya is scheduled to meet top AAI officials on Monday to urge for some relief in the quantum of dues as well as the mode of their repayment. Mallya’s airline owes the largest amount among all private carriers.
17/11/08 Sindhu Bhattacharya/Daliy News & Analysis

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