MIAL serves notice to Kingfisher to clear dues
11 May 2011
New Delhi: Kingfisher Airlines Ltd may have to start operating on a cash-and-carry basis at Mumbai international airport if it doesn't clear airport operator dues immediately. Reports suggest that the carrier's cheques offered for payment may have bounced.
Mumbai International Airport Ltd (MIAL) has served Kingfisher a deadline of 25 May to clear outstanding dues, which amount to Rs105.71 crore. Failure to do so would result in withdrawal of credit facilities and the carrier would have to pay for services on a cash-and-carry basis.
MIAL is operated by a consortium led by GVK Power and Infrastructure Ltd.
Apparently, MIAL communicated to Kingfisher's chief executive Sanjay Aggarwal on 7 May that the airline had failed to meet its December commitment to clear airport charges by February.
Apparently, MIAL's letter to Aggarwal, not only mentions the total dues but also the fact that the airlines cheques submitted for payment in December had bounced and that MIAL had been sitting them all this while without seeking compensation on assurances provided by Aggarwal.
Airport charges include not just landing and parking fees but also passenger service and airport development fees that airlines collect from passengers.
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