MIAL to put Kingfisher on cash-and-carry mode

Mumbai: Kingfisher Airlines' woes are set to worsen. For, the Mumbai International Airport Limited (MIAL) is from this Saturday putting the airline on a cash-and-carry mode, as the cash-strapped airline has not paid it Rs 90 crore towards landing, parking and other charges.
In fact, the GVK Group-run MIAL issued a notice to the airline on Thursday.
The MIAL action comes on the heels of a similar action proposed by Airports Authority of India.
Cash-and-carry mode means an airline has to pay airport charges every time it takes off and lands, and a failure to do so could lead to grounding of its flights.
AAI has issued a notice to the UB Group-owned airline for not clearing dues up to Rs 240 crore, according to a report. It said the airline's chairman, Vijay Mallya, met AAI chairman V P Agarwal assuring timely payments of dues.
On Thursday, an MIAL source said Kingfisher had not paid dues for six months. The amount due includes interest cost as well. The airline has 42 daily departures from Mumbai, and may have to curtail operations in case it was unable to reach an amicable settlement.
It is the second time this year that Mumbai airport has warned the airline to clear dues or accept a cash-and-carry mode. Earlier, the GMR Group runs Delhi and Hyderabad airports, had warned of similar action.
02/12/11 Business Standard

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Categories: Kingfisher Dec 2011