AAI threatens to encash Kingfisher Airlines' cheques worth Rs 119 cr

New Delhi: The debt-strapped Kingfisher Airlines could be headed for more trouble. The State-owned airport operator, Airports Authority of India, has threatened to encash the airlines' cheques worth Rs 119 crore to clear the latter's dues that amounted to Rs 255 crore as of January 16.
“The airline cheques are already with us. We plan to present them to the bank and recover our money. If they bounce, it is for the law to take its course,” a senior official said. Incidentally, this is not the first time that the airline and AAI have had such problems.
When contacted, a Kingfisher spokesperson said: “We do not comment on supplier and partner relationships externally.”
The airline has been facing a severe financial crisis in the recent past, which has even led to non-payment of salaries to its employees. At the end of the September 2011 quarter, Kingfisher Airlines saw its losses double to Rs 469 crore against a loss of Rs 231 crore during the same period last year.
09/02/12 Ashwini Phadnis/Shishir Sinha/Business Line

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Categories: airports Feb 2012, Kingfisher Feb 2012