Kingfisher Airlines defaults on dues to OMCs

New Delhi: When the the aviation industry is facing a gruelling time, Kingfisher Airlines has once again defaulted on dues of around Rs 418 crore to be paid to oil companies, senior civil aviation ministry officials said. The airline recently defaulted on the three-month credit period extended to it by the oil companies. Given the repeated defaults by the airline, a worried petroleum and natural gas ministry has written to the civil aviation ministry to put pressure on Kingfisher Airlines to clear the dues as soon as possible. The oil ministry, sources said, is also concerned about the unpaid dues of other carriers, Kingfisher Airlines, whose annual fuel bill runs up to almost Rs 5,000 crore, is now in a bind and has sought more time from the civil aviation ministry, without specifying the time frame within which it would be able to repay the oil companies, officials said. The airline recently hiked its fuel surcharge by Rs 200 citing the rise in fuel prices. “The aviation industry is in a bad shape, but Kingfisher Airlines, per se, seems to be the worst paymaster,” a senior ministry official said. It also owes a considerable amount to the AAI, around Rs 214 crore, including Rs 18 crore interest on delayed payment.
In the recently announced results for the second quarter of 2008-09, the airline suffered a loss of Rs 418 crore and a 32 per cent decline in revenue compared with the same period a year ago.
14/11/09 Smita Aggarwal/Indian Express

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Categories: Kingfisher Nov 2009