Airports Authority asks Kingfisher to raise loans and clear dues
28 Oct 2011
Mumbai: The Airports Authority of India (AAI) has asked Kingfisher Airlines to clear outstanding dues worth Rs210 crore and has also suggested the financially beleaguered airline raise loans from banks towards this end. A bank loan would actually help the embattled carrier save on interest rate.
Outstanding dues attract an interest rate of 18 per cent, while a bank loan can be raised at an interest of 11-12 per cent.
''Its pure economics,'' a senior AAI official has been quoted as saying. The airline has apparently responded by saying it would secure a bank loan shortly and clear its dues.
Kingfisher currently makes an upfront payment to the AAI for the use of airport infrastructure and facilities managed by the AAI across the country. Under mutually agreed commercial terms, the airline pays 15 days in advance to the operator.
According to industry sources, Kingfisher's current monthly bills for airport use stands at around Rs31 crore.
The airline flies to 57 cities in India and eight international destinations and clocks 325 daily departures with a fleet of 66 aircraft.
