DIAL, HIAL threaten to snap credit line to AI

New Delhi: GMR group companies Delhi International Airport (DIAL) and Hyderabad International Airport (HIAL) have told the aviation ministry that they would start charging Air India on cash-and-carry basis as the government-owned airline had not paid airport charges on time for the last several months.
Air India owes about R350 crore to the two airport companies. The airport operators have continued to give credit line to the cash-starved airline since last September on instructions from the aviation ministry to go soft.

“We have informed the aviation ministry that we cannot now further give credit to Air India. We share revenue with Airports Authority of India (AAI) on the basis of projections and not on cash received. So, we have already shared almost R170 crore with AAI by market borrowings even as if we have not received payment from AI,” said a GMR official.
02/09/11 Nirbhay Kumar/Financial Express

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Categories: Air India Sep 2011