AAI refuses to give credit to Kingfisher

New Delhi: In a first move of its kind, state-run Airports Authority of India (AAI) has decided to disallow credit to Vijay Mallya's Kingfisher and put the airline on cash-and-carry mode (no credit, needs to pay in cash immediately for using airport facilities). The airline's current dues with AAI are learnt to have exceeded its bank guarantee of Rs 100 crore by Rs 53 crore.
"Till the airline clears these dues, we have decided to put it on cash-and-carry mode from June 30. This decision was conveyed to Vijay Mallya when he came to the ministry some days back," said a top official. Kingfisher did not comment on this issue.
This is the first time AAI has decided to put an airline on cash-and-carry. Last month, IndianOil had encashed Kingfisher's bank guarantee of Rs 50 crore after the latter's cheque had bounced.
In the past also there have been many occasions when Kingfisher's airport dues have crossed its bank guarantee and at least one time the cheque given by the airline to AAI bounced due to insufficient funds. The airline later made the payment by wire to the authority. "Jet's dues are also on the borderline of its bank guarantee and we are keeping a close watch on its payment status," said the official.
AAI is also facing problem with state-run Air India-Indian Airlines combine whose dues are nearly Rs 750 crore.
22/06/09 Saurabh Sinha/Times of India

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Categories: Airports Jun 2009, Kingfisher Jun 2009