Taxi operator hits an 'air pocket'

Hyderabad: Service providers to private airlines are now feeling the heat of the severe financial crisis the airline industry is reeling under.
After lay offs and salary cuts, the latest airline-inflicted woe is that of a taxi operator running into losses of over crores of rupees after a private airline defaulted on its payments over the last few months.
The airline which was recently in the news for salary cuts of its senior employees and freezing pilot recruitments has now defaulted in the payment of Rs 12 crore to Poorti Rent A Car & Logistics Pvt. Ltd. that operates in various cities such as Mumbai, Delhi, Bangalore and Hyderabad, to ferry the carriers’ ground staff and cabin crew to airports. The agency, which is now counting its losses, has signed an all India contract with the carrier for three years and says the problem started in Hyderabad since April this year when the airport moved to Shamshabad. The problem intensified in Bangalore too where the airport shifted to a distant location.
In Hyderabad, the agency has been plying an average of 27 light vehicles and eight buses in the city ferrying the airlines staff to and fro from the airport. While cars are being provided for the cabin crew, buses are plied for the ground staff.
The agency that caters to three airlines is now worried about its newly purchased fleet of vehicles.
Incidentally, the airline was also in the news for defaulting on payment of lease rentals to an aviation services firm for four aircrafts.
08/11/08 Times of India

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