Dues: AAI gets tough on airlines

New Delhi: With FM Pranab Mukherjee refusing Airports Authority of India (AAI) the permission to issue tax free bonds for raising Rs 5,000 core, the PSU has decided to get tough with airlines on payment part. The authority has dues of Rs 900 crore from airlines, of which Rs 620 crore and Rs 195 crore are owed by Air India and Kingfisher, respectively.
AAI has asked airlines, which are getting cash flow with traffic reviving, to either have dues within bank guarantees or else be on cash and carry. While it can't touch sister public sector AI, AAI on Thursday wrote to Kingfisher to clear its dues by December 10. "Kingfisher has dues of Rs 195 crore while its bank guarantee is Rs 100 crore. We have repeatedly asked the airline to pay up. We will wait till December 10 before putting them on cash and carry. Dues of other airlines, except AI, are within bank guarantees or only marginally higher," said a top AAI official.
20/11/09 Saurabh Sinha/Times of India

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Categories: Airports Nov 2009, Indian Aviation- In General Nov 2009