Govt rules out grounding KFA; AAI extends deadline by 1 day

New Delhi: Airports Authority of India (AAI) has given one more day to Kingfisher to clear its cash-andcarry dues of past one week even as aviation minister Ajit Singh on Wednesday ruled out closure of the crisis-ridden airline. "You can't close down a company because they are making losses or banks are not giving them money. As long as passenger safety is not jeopardized, as long as they keep their schedule, why should we close down any industry ?" the minister told reporters, adding that the closure of an airline would impact passengers greatly.
With the ministry itself setting the tone, AAI - which had given Kingfisher time till Wednesday to clear its cashand-carry dues of Rs 5 crore accumulated over a week - extended the deadline by another day.
The airline has categorically told AAI that if the latter pushes for clearing dues (Rs 250 crore for old ones and over Rs 5 crore on cash-andcarry account), it would have no option but to shut down.
01/03/12 Times of India

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Categories: airports Mar 2012, Kingfisher Mar 2012