Kingfisher in talks with GVK for repayment of dues

Mumbai: Kingfisher Airlines is in talks with the GVK-led Mumbai International Airport (MIAL) over repayment of Rs 19.70-crore dues for a host of overheads relating to landing, parking, route navigation levy and terminal charges.
Sources say that as part of this endeavour, it has kicked off the exercise with a “substantial part-payment”.
MIAL’s letter dated March 7, which is in the possession of Business Line, says that it would “be constrained to deal with Kingfisher Airlines on a cash-and-carry basis from March 11” if the latter did not clear the dues.
Sources said that MIAL did not follow up on this ultimatum and extended the payment period instead.
“We regret to inform you that despite constant follow-up and reminders, we are unable to resolve this perennial impediment towards settlement of dues that have been defaulted in terms of timely payment,” the letter stated.
The airline’s low-cost subsidiary, Kingfisher Red, has also been mentioned as owing Rs 1.35 crore. “In view of the current circumstances, Kingfisher Airlines has to submit its bank guarantee and has to liquidate its dues,” it added.
A spokesman for the airline dismissed the issue as “complete nonsense” in an e-mail response while GVK maintained that “as a matter of policy, we do not comment on commercial issues between MIAL and airlines”.
18/03/09 Varada Bhat/Business Line

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Categories: Kingfisher Mar 2009