New Delhi: The Airports Authority of India (AAI) has sent notice to Kingfisher Airlines for clearing dues worth R210 crore. The public sector AAI has advised the airline to raise loans from banks to pay off the outstanding as the move would help them save on interest rate.
The airline has said that it would secure bank loan shortly and clear the dues. It makes sense since the dues is attracting an interest rate of 18%. Bank loan can be raised at an interest of 11-12%. “It’s pure economics,” a senior AAI official told The Financial Express.
The Vijay Mallya-promoted Kingfisher Airlines is currently making upfront payment for using the airport infrastructure managed by the AAI across the country. As per the mutually agreed commercial terms, the airline is paying 15 days in advance for airport usage to the operator.
25/10/11 Nirbhay Kumar/Financial Express
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