Monday, May 11, 2020

AAI suspends overdraft facility of airports, puts vendor payments on hold

In wake of fund-crisis due to complete shutdown of the aviation sector, Airports Authority of India (AAI) has suspended overdraft limits of airports and all other field stations with immediate effect.  The statutory body, working under the Ministry of Civil Aviation, has also put on hold all vendor payments, including project payments, with immediate effect.

"During the ongoing nationwide lock down due to COVID-19 pandemic and total shut down of the aviation sector, the generation of revenue and revenue realisations of AAI from traffic and non-traffic services have been severely impacted and stalled," according to a circular issued by the airports authority on Sunday.

Considerable cash reserves in the form of term deposits have been utilised till date to maintain flow of  funds to meet salaries, utility payments, statutory payments, vendor payments and project payments, AAI said.

"As on date, the fund position is very critical. Till alternate arrangements are made for making funds available, all regional and corporate headquarters of AAI are directed to immediately suspend overdraft limits of airports and all other field stations under the respective regional headquarter (RHQ) linked with State Bank of India, HDFC Bank, Vijaya Bank," it said.
"All vendor payments including project payments are put on hold with immediate effect," AAI said, adding that the payments will be released only after fresh communication from its corporate headquarters in this regard.
11/05/20 Chitranjan Kumar/Business Today
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