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The cash-strapped Kingfisher Airlines is in more trouble with several airports slapping the aviation major notices to clear dues.
In what could add to the gloom over the airline, the Mumbai International Airport Ltd (MIAL) plans to put Kingfisher Airlines on ‘cash and carry' basis from December 3.
The airline company would need to pay Rs 60 lakh a day to MIAL to operate flights to and from Mumbai, an airport source told Business Line . Kingfisher Airlines has defaulted on payments to MIAL for the past six months and owes about Rs 90 crore, the source said. Kingfisher Airlines operates maximum flights out of Mumbai and Delhi airports, the official said.
‘Cash and carry', in this case, refers to an upfront payment of cash for every airline operated in and out the airport. This means the airline would not receive the privilege of paying the airport at the end of the month for operating flights.
The Airports Authority of India (AAI) has already put Kingfisher Airlines on a ‘cash and carry' basis due to continued non-payment. The company owes Rs 240 crore to AAI.
In a statement issued on Thursday, Kingfisher Airlines said, “As a matter of policy we do not comment on supplier and partner relationships. However, we would like to reassure all our guests that all our flights will continue to operate as normal as per the revised schedule published on our Web site.”
Meanwhile, in an effort to boost passenger traffic and revenue, Kingfisher Airlines has introduced the ‘Fly One, Get One free' offer between December 1 and 31 on the domestic network.
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