Shares of Kingfisher Airlines fell over 5 per cent in the morning trade on the BSE today after Mumbai International Airport Ltd (MIAL) threatened to put the company on cash-and-carry mode from tomorrow if it fails to pay up dues of around Rs 90 crore.
After a weak start, the scrip lost further ground and fell 5.66 per cent to Rs 22.50 on the BSE. However, the stock saw some of the initial losses pared in later trade and was being quoted at Rs 23.15, down 2.94 per cent from its previous closing price.
The development comes amid reports that the state-run Airports Authority of India had also threatened to put the airline — which is sitting on a debt pile of over Rs 12,000 crore — on cash-and-carry mode.
The airline owes Rs 240 crore to the national airports operator and the move reportedly came after a cheque issued by Kingfisher bounced.
Airlines usually pay monthly charges to the airport operators. But under the cash-and-carry mode, Kingfisher — which operates most of its flights from the Mumbai and Delhi airports — will have to make daily payments.