The Mumbai International Airport (MIAL) has threatened preventing Kingfisher Airlines from operating from May 14 if the cash-strapped carrier does not clear the dues towards airport charges or at least opt for a cash-n-carry mode. "We have written to Kingfisher Airlines about the Rs 105.7-crore (Rs 1.05 billion) dues towards airport charges. Their response is satisfactory. Therefore, we have decided to put them on a cash-n-carry mode from May 14 and if they don't agree, then they will be banned from operating from our airport," a senior MIAL official seeking anonymity, told PTI.
However, the official did not specify about the terms that Kingfisher has put forth, saying "those are business matters which cannot be shared with the public."
When reached for comments, a spokesperson for Kingfisher, which is sitting on a debt pile of Rs 6,900 crore (Rs 69 billion) even after the recent debt recast plan, said, "as a matter of policy, we do not comment on or discuss supplier and partner relationships in the public domain".
Even after six years into operations, the liquor baron Vijay Mallya-led Kingfisher is yet to turn profitable and its cheque to MIAL towards airport charges running up to Rs 105.71 crore bounced recently.
Industry analysts say that the airline will post losses in the fourth quarter too, as oil prices have been on the rise for quite some time. Fuel costs constitute over 40 percent of the operational costs of an airline.
According to reports in a section of the media, MIAL, in a letter dated May 7, has warned withdrawing the credit facility for Kingfisher which has been enjoying since December from May 14 and sought payments latest by May 25.
This would mean that the airline would have to pay for the airport services on a cash-n-carry basis.
