KF put on cash-&-carry by GMR from Sunday

New Delhi: The GMR Group — which runs Delhi and Hyderabad airports — has decided to put 'king of good times' Vijay Mallya's Kingfisher on cash-and-carry from coming Sunday for payment defaults. Similarly fed up with chasing this airline for payment, state-run Airports Authority of India (AAI) has also asked Kingfisher to either clear the Rs 200-crore dues by the weekend or be on cash-and-carry from Monday. The GVK Group, which runs Mumbai and Bangalore airports, will take a call on what to do with Kingfisher next week.
"Kingfisher has a bank guarantee of Rs 100 crore and their dues are Rs 200 crore. They gave us dated cheques for Rs 50 crore but we were asked not to deposit them for lack of funds. On Monday, we issued a notice to the airline to clear all dues. If that is not done, we'll encash the bank guarantee and may put the airline on cash-and-carry," said a senior AAI official.
A GMR Group official said Mallya's carrier owes Delhi and Hyderabad about Rs 125 crore.
11/08/10 Saurabh Sinha/Times of India

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Categories: airports aug 2010, Kingfisher Aug 2010