Mumbai airport operator set to put Kingfisher on cash-and-carry basis
02 Dec 2011
Mumbai: Mumbai International Airport Ltd (MIAL), operators of the Chhatrapati Shivaji International Airport, have threatened to put near-bankrupt carrier, Kingfisher Airlines, on a cash-and-carry mode from Saturday should the carrier fail to clear dues which have by now accumulated to around Rs90 crore.
MIAL recently complained of a dishonoured Kingfisher cheque, which was the second time it has done so in its relations with the airline.
MIAL's move comes even as reports emanate that state-run Airport Authority of India has threatened to put the airline on cash-and-carry mode.
The airline owes Rs240 crore to the airport operator and, like MIAL, it too has had a cheque from Kingfisher dishonoured.
Under the cash-n-carry mode all credit facilities are withdrawn and a carrier will have to make daily payments. According to MIAL sources, in the cash-n-carry mode the airline will have to pay MIAL Rs60 lakh daily for operating services.
They also confirmed that the carrier had defaulted on payments for the last six months.