New Delhi: The Airports Authority of India (AAI) has turned down a request from Kingfisher Airlines to waive off the interest on dues. The airline had earlier delayed the payment of about Rs 280 crore in the face of reduced cash flow due to sharp fall in air traffic. The airline, however, cleared the outstanding, following the state-owned airport operator’s repeated demands to settle the same.
AAI had even threatened to put the airline on cash-and-carry, requiring the carrier to pay airport charges soon after the use.
“Kingfisher continues to withhold the interest payment of about Rs 24 crore, saying it has requested the aviation ministry for a waiver. The airline insists that AAI should demand interest payment only after the ministry takes a decision on the issue,” an AAI note reviewed by ET said.
Kingfisher, currently, owes about Rs 132 crore to the public sector airport operator. When contacted, an aviation ministry official said that the airline would have to pay the interest to AAI. The airline refused to comment on the issue. An AAI official, who requested anonymity, said that Kingfisher had been asking the airport operator to forgo some of the dues of low-cost carrier Air Deccan, which it had acquired.
While two of its listed rivals, Jet Airways and SpiceJet, have reported a profit of Rs 105 crore and Rs 108 crore, respectively, for the quarter ended December 2009, Kingfisher reported a loss of Rs 420 crore. Most of the air-carriers have seen significant jump in passenger numbers and flight occupancy in the past few months. This has resulted in increased cash flow.
12/02/10 Nirbhay Kumar/Economic Times
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