What if Air India closes down, just as Kingfisher Airlines did, in October 2012? A similar situation exists for Air India, which is in deep debts to the Mumbai International Airport Pvt. Ltd. (MIAL) and Delhi International Airport Pvt. Ltd. (DIAL). Air India owes a sum of Rs. 450 crore to the MIAL and a total of Rs. 500 crore to the DIAL, which operates airports at both Delhi and Hyderabad.
The airports charge carriers for the utilization of the airport for landing and parking on their tarmac, and also for the usage of the terminals for the boarding or deplaning of their passengers to and from their aircraft respectively. This fee is as per the standards given by the Ministry of Civil Aviation of India. The fees is relatively higher at busy airports like Delhi and Mumbai. On May 16th 2014, MIAL sent a letter to the chairman of Air India and the Joint Secretary of the Ministry of Civil Aviation, stating that by June 1st 2014, Air India would require to pay Rs. 200 crore (i.e., a part of the Rs. 450 crore debt) to MIAL, to avoid AI to be put on cash-and-carry. With Cash-and-carry, Air India would need to first pay the fees and then use the airport’s facilities, which would virtually shut off all flights of Air India from and to Delhi, Mumbai and Hyderabad.
23/05/14 The India Republic
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The airports charge carriers for the utilization of the airport for landing and parking on their tarmac, and also for the usage of the terminals for the boarding or deplaning of their passengers to and from their aircraft respectively. This fee is as per the standards given by the Ministry of Civil Aviation of India. The fees is relatively higher at busy airports like Delhi and Mumbai. On May 16th 2014, MIAL sent a letter to the chairman of Air India and the Joint Secretary of the Ministry of Civil Aviation, stating that by June 1st 2014, Air India would require to pay Rs. 200 crore (i.e., a part of the Rs. 450 crore debt) to MIAL, to avoid AI to be put on cash-and-carry. With Cash-and-carry, Air India would need to first pay the fees and then use the airport’s facilities, which would virtually shut off all flights of Air India from and to Delhi, Mumbai and Hyderabad.
23/05/14 The India Republic
