Logistics

Mumbai airport tells Kingfisher to clear dues

Our Bureau Mumbai | Updated on May 10, 2011 Published on May 10, 2011

kingfihser

Mumbai International Airport Ltd (MIAL) has sent a letter to Kingfisher Airlines asking them to clear their landing and parking fee dues. MIAL said if Kingfisher Airlines does not clear the dues, then it will have to operate on a cash-and-carry basis.

“We have sent out a letter to them regarding the landing and parking dues. The letter has a timeframe for repayment of dues. If they don't stick to that timeframe then the airline will have to operate on a cash and carry basis where in they would have to pay for every landing and take off,” said a MIAL spokesperson.

Volume of fees

However, MIAL did not reveal the volume of fees owed to it by Kingfisher Airlines or the timeframe for repayment.

Meanwhile, Kingfisher Airlines did not comment on the development.

“As a matter of policy we do not comment on or discuss supplier and partner relationships in the public domain,” said a Kingfisher Airlines spokesperson.

In August 2010, Kingfisher Airlines had paid Rs 20 crore to MIAL as part of clearing their dues and had committed to pay the rest of its dues. MIAL had then refrained from putting the airline on cash-and-carry mode.

Cash-and-carry mode

On a cash-and-carry mode, airlines are required to pay about Rs 1.35 lakh before an Airbus A320 flight can take off or land.

If the airline is clearing its credit on time then it gets some relief in the form of rebates, according to industry officials.

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Published on May 10, 2011
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