The Wadia-group run GoAir has made a part payment of its outstanding dues and has secured a temporary reprieve from the Airport Authority of India (AAI).
GoAir has pending dues of about Rs 40 crore. Last week, the Airport Authority of India issued a notice to the airline to immediately pay the outstanding dues or else lose the credit facilities. Losing credit facilities would mean the airline will have to pay in advance to the airport operator before its flights.
GoAir has now paid about Rs 5 crore to the AAI and its outstanding dues stand at Rs 35 crore, an aviation source said. The airline has a bank guarantee of Rs 30 crore with the AAI sufficient to cover two months dues.
The airline said that AAI notice only mentioned bringing down the outstanding dues to the guarantee amount.
AAI's billing cycle covers a fortnight and airlines get fifteen days credit period after the issue of bill. However, most airlines only make part payments as the amount is covered under bank guarantees. "GoAir has been irregular in making payments to the AAI in last few months and hence the notice was issued to the airline," the aviation source added.
05/01/15 Business Standard
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GoAir has pending dues of about Rs 40 crore. Last week, the Airport Authority of India issued a notice to the airline to immediately pay the outstanding dues or else lose the credit facilities. Losing credit facilities would mean the airline will have to pay in advance to the airport operator before its flights.
GoAir has now paid about Rs 5 crore to the AAI and its outstanding dues stand at Rs 35 crore, an aviation source said. The airline has a bank guarantee of Rs 30 crore with the AAI sufficient to cover two months dues.
The airline said that AAI notice only mentioned bringing down the outstanding dues to the guarantee amount.
AAI's billing cycle covers a fortnight and airlines get fifteen days credit period after the issue of bill. However, most airlines only make part payments as the amount is covered under bank guarantees. "GoAir has been irregular in making payments to the AAI in last few months and hence the notice was issued to the airline," the aviation source added.
05/01/15 Business Standard
