AI, Kingfisher agree to pay GMR dues

New Delhi: Air India and Kingfisher Airlines have agreed to pay their dues to Bangalore-based GMR, which runs the Delhi and Hyderabad airports, through a repayment plan, helping them to tide over the cash-and-carry arrangement from June 1. GMR, which had threatened to put the two air carriers on a cash-and-carry arrangement, will not do so as the agreement envisages a plan to settle the dues, said senior officials close to GMR.
Under a cash-and-carry arrangement , AI and Kingfisher would have had to make daily payments to the Delhi and Hyderabad airports or risk having their flights cancelled from June 1. While Kingfisher has now paid its dues for April and May this year to Delhi International Airport (DIAL) and GMR Hyderabad International Airport (GHIAL), national carrier has worked out a repayment plan to clear pending dues, said a release from GMR.
Air India will make daily payments of all the aeronautical charges to DIAL and GHIAL from June 1, 2011, the release added. Air India owes GMR Rs 263 crore, while Kingfisher Airlines owes Rs 90 crore upwards . The airport developer has been asking Air India and Kingfisher to pay up for the past 10 and six months, respectively. "Air India has paid Rs 10-15 crore as of now and will also present a plan on making payments to GMR over the next week," a senior civil aviation ministry official said.
"The government is supposed to release Rs 400 crore to Air India for Haj operations and Libya evacuation, expected over the next week. Payments can then be made to the airport operator."
01/06/11 Anindya Upadhyay/Economic Times

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Categories: Air India Jun 2011, Kingfisher Jun 2011