The Hindu Business Line : Kingfisher finalises AAI dues payment schedule

The payment row between Kingfisher Airlines and the Airports Authority of India (AAI) seems to have been finally resolved with the airline making part of the entire Rs 268 crore payment to the AAI.

Sources in the AAI told Business Line that during the meeting between the airline Chairman, Mr Vijay Mallya and the AAI Chairman, Mr M. Ramalingam, the payment schedule was finalised. It is learnt that an amount of Rs 50 crore was paid immediately to the AAI. Payment of another Rs 150 crore would be made in a staggered manner over the next one-and-half-to two months through post dated cheques.

While a Kingfisher Airlines spokesperson confirmed that the issue over the Rs 268-crore dues to AAI has been resolved “amicably”, he did not give details about how the issue was resolved. The meeting between the airline officials as well as AAI officials was held over two days to thrash out the modalities of payment.

AAI is learnt to have threatened earlier that if Kingfisher Airlines did not pay up all the dues, it will be forced to encash the bank guarantee money of over Rs 60 crore.

Mr Mallya has on behalf of the Federation of Indian Airlines, a body formed by all domestic airlines, has repeatedly said that the AAI should bring down its tariff rates to manageable levels in the current scenario.

More Stories on : Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mounting an identity

Kingfisher finalises AAI dues payment schedule

Gopinath reduces stake in Kingfisher

Fresh plan for Vizhinjam land acquisition

Call to develop Vizag as a container hub

Railways urged to do away with seasonal levies