Airports slapping the aviation major notices to clear dues
Agence India Press
New Delhi: The cash-strapped Kingfisher Airlines is in more trouble with several airports slapping the aviation major notices to clear dues.
In what could add to the gloom over the airline, the Mumbai International Airport Ltd (MIAL) plans to put Kingfisher Airlines on ‘cash and carry’ basis from December 3.
Vijay Mallya-led Kingfisher Airlines is in more trouble with several airports slapping the aviation major notices to clear their dues. Mumbai airport has issued notice to Kingfisher Airlines to pay usage charges immediately amounting to Rs 90 crore.
Sources say that the airline has been told to pay the amount by Saturday. They added that if the airline fails to pay the dues, it will be put on cash-and-carry, and will be charged Rs 60 lakh a day starting from December 3.
Sources added that the airline had provided payment through cheques to the Mumbai airport but all of them bounced.
Delhi and Hyderabad airports have also sent notices to the airline with regard to outstanding dues.
Compounding its troubles, the Airports Authority of India (AAI) has also sent Kingfisher Airlines a notice to clear the dues of Rs 240 crore at all its airports.
The airline faced the wrath of the Directorate General of Civil Aviation (DGCA) in November when it cancelled over 80 flights without taking prior approval from the aviation body,
The aviation regulator issued a notice to Kingfisher under rule 140 (a) of the aircraft rules for not taking prior approval before cancelling flights.
The airline, however, maintained that they had to cancel flights as they were trying to reconfigure their aircrafts.
Kingfisher needs over Rs 1000 crore in working capital loans to tide over its current crisis.
“We have been trying to raise capital. However, due to global economic environment driving the fuel price up and uncertainty in the market, we have not been able to do it but we remain optimistic. We will raise capital but yes Kingfisher has expressed our desire to raise the capital,” said Sanjay Aggarwal, CEO, Kingfisher Airlines.
Sources have said that Subroto Roy of Sahara Parivar may invest Rs 500-600 crore in the cash-strapped Kingfisher airlines
Kingfisher, which listed when it bought out budget airline, Air Deccan in 2008, has never made a profit and its market value has plunged 64 per cent this year.
The airline became India’s No 2 private carrier since it began operations in 2005 as the economy boomed but it has become one of the main casualties of high fuel costs and a fierce price war between a handful of airlines which, between them, have ordered hundreds of aircraft for delivery over the next decade in an ambitious bet on the future.
(With additional information from PTI)