AAI asks airlines to clear outstanding landing and parking charges
02 Aug 2008
Mumbai: Domestic air-carriers have been allowed some leeway from the Airports Authority of India (AAI) on the issue of non-payment of landing and parking charges at the Mumbai airport. It is being given to understand that the default now stands at over Rs1,000-crore. Senior AAI officials said that the airlines have been allowed a grace period.
According to reports, while flag carrier Air India owes Rs500 crore, private carriers, Jet Airways and Kingfisher owe around Rs395 crore and Rs100 crore respectively.
Private carriers point out that settlement terms are negotiated from time to time and that the AAI is already in possession of enforceable bank gaurantees to the extent of 100 per cent of the mutually agreed credit limit.
Whenever the outstanding amount exceeds 50 per cent of the covered credit, carriers point out, it is the normal practice to ask airlines to pay up the difference.