GMR says it may put Kingfisher on cash & carry

Bangalore: After state-run Airports Authority of India (AAI), its private partner at Delhi and Hyderabad airports, the GMR group, plans to initiate action against Vijay Mallya-owned Kingfisher Airlines for defaulting on payments at the two airports.
A senior GMR official, who did not wish to be named, told DNA his company plans to put the defaulting airline on a cash-&-carry mode in the next two days.
AAI has already put the defaulting airline on cash-cash-carry mode as its dues reportedly exceeded its bank guarantee of Rs 100 crore by Rs 53 crore.
Once an airline is shifted to cash-and-carry mode, it stops enjoying credit facility and has to pay as and when bills are presented.
"There is a small bank guarantee of Rs 4-5 crore, but that is not enough. We are not able to pay our service providers because airlines like Kingfisher are not paying fees on time. So, we have decided to follow our partner (AAI) and will put it (Kingfisher) on cash-and-carry mode to recover our dues," the GMR official said.
The official said Kingfisher's total outstanding to the private airport operator amounted to Rs 40 crore, including Rs 30 crore to Delhi International Airports and Rs 10 crore to Hyderabad International Airport.
Bangalore-based GMR operates the two airports along with AAI.
24/06/09 Praveena Sharma/Daily News & Analysis

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Categories: Airports Jun 2009, Kingfisher Jun 2009