By: B V Shiva Shankar
Bangalore: While Kingfisher, which has defaulted on payments, is looking for ways and means to postpone paying its dues, the airports are contemplating banning the flights of the airlines.
As encashing the airline's bank guarantee would not serve the purpose, private airports like Bangalore International Airport (BIA) and GMR Hyderabad International Airport are looking at tougher measures.
That might include blacklisting the carrier, according to reliable sources.
Pay quickly: AAI
Airports Authority of India (AAI) has written to Kingfisher asking for immediate payment to avoid banning flights from the airports. AAI manages all the airports in the country except private airports, where it is in-charge of air traffic control (ATC).
Kingfisher owes around
Rs 35 crore to BIA towards airport charges, while it has to pay Rs 30 crore to AAI, Bangalore branch as ATC fee.
"There are various methods to take action against the airlines that is not paying dues," said B R Sena, director, AAI, Bangalore.
"We can stop flights from coming into the airport or we can prevent them from taking off till the payment is made."
AAI sources said, while the other airlines were fairly punctual, Kingfisher was the biggest defaulter.
"I know AAI has written to Kingfisher and I think the airlines has to respond to it, otherwise tough action will follow," said Sena.
Not enough
The sources in AAI said encashing the airline's bank guarantee would not be enough, as the dues are much more than that.
Its bank guarantee with the BIA is around Rs 10 crore, while the dues are more than Rs 35 crore. Kingfisher has to pay about Rs 300 crore to AAI across the country and its bank guarantee is a mere Rs 30 crore.
Sena said the new airports like BIA could not survive with these dues piling up.
Alburt Brunner, CEO of BIA, had said last week, the situation had not yet arisen for encashing the bank guarantee of Kingfisher. However, sources said the airport was seriously looking at this option as well.
When contacted, the official spokespersons of the airport declined to divulge the details, but the status was quite clear when MiDDAY spoke to key authorities.
Slowdown effects
A source in BIA said, "We can go for any stringent action, but the ongoing slowdown has tied our hands. As it is, the number of flights have come down and if we ban aircraft, it may add to our problems. But, there is a limit to it. If the situation continues like this, we may have to take the extreme step."
BIA was talking to Hyderabad airport about a concerted plan of action to recover dues from Kingfisher and the response was positive, said the source.
Talks on
Kingfisher's corporate communication sought more time to come out with a statement on the issue while the sources in the company said the authorities were in talks with the government and the airports to get some breathing time.
Share distress
"BIA can even seize the aircrafts of Kingfisher," said Devesh Agarwal, aviation expert. "But it would be a difficult business for an airport like BIA as Kingfisher is based in Bangalore and it is a dominant customer of the airport."
"You see everybody is in distress today, and this is the time to share the distress and that is exactly how we are trying to convince them," said the source. "After all Kingfisher is a reputed brand and we request them to bear with us."
Money facts
>>Kingfisher owes Rs 35 crore to BIA towards airport charges
>>Rs 30 crore to AAI, Bangalore branch, as ATC fee
Source: http://www.mid-day.com/news/2008/nov/211108-Kingfisher-airlines-postponing-payment-of-dues-Bangalore-private-airports-flights-ban.htm
Bangalore: While Kingfisher, which has defaulted on payments, is looking for ways and means to postpone paying its dues, the airports are contemplating banning the flights of the airlines.
As encashing the airline's bank guarantee would not serve the purpose, private airports like Bangalore International Airport (BIA) and GMR Hyderabad International Airport are looking at tougher measures.
That might include blacklisting the carrier, according to reliable sources.
Pay quickly: AAI
Airports Authority of India (AAI) has written to Kingfisher asking for immediate payment to avoid banning flights from the airports. AAI manages all the airports in the country except private airports, where it is in-charge of air traffic control (ATC).
Kingfisher owes around
Rs 35 crore to BIA towards airport charges, while it has to pay Rs 30 crore to AAI, Bangalore branch as ATC fee.
"There are various methods to take action against the airlines that is not paying dues," said B R Sena, director, AAI, Bangalore.
"We can stop flights from coming into the airport or we can prevent them from taking off till the payment is made."
AAI sources said, while the other airlines were fairly punctual, Kingfisher was the biggest defaulter.
"I know AAI has written to Kingfisher and I think the airlines has to respond to it, otherwise tough action will follow," said Sena.
Not enough
The sources in AAI said encashing the airline's bank guarantee would not be enough, as the dues are much more than that.
Its bank guarantee with the BIA is around Rs 10 crore, while the dues are more than Rs 35 crore. Kingfisher has to pay about Rs 300 crore to AAI across the country and its bank guarantee is a mere Rs 30 crore.
Sena said the new airports like BIA could not survive with these dues piling up.
Alburt Brunner, CEO of BIA, had said last week, the situation had not yet arisen for encashing the bank guarantee of Kingfisher. However, sources said the airport was seriously looking at this option as well.
When contacted, the official spokespersons of the airport declined to divulge the details, but the status was quite clear when MiDDAY spoke to key authorities.
Slowdown effects
A source in BIA said, "We can go for any stringent action, but the ongoing slowdown has tied our hands. As it is, the number of flights have come down and if we ban aircraft, it may add to our problems. But, there is a limit to it. If the situation continues like this, we may have to take the extreme step."
BIA was talking to Hyderabad airport about a concerted plan of action to recover dues from Kingfisher and the response was positive, said the source.
Talks on
Kingfisher's corporate communication sought more time to come out with a statement on the issue while the sources in the company said the authorities were in talks with the government and the airports to get some breathing time.
Share distress
"BIA can even seize the aircrafts of Kingfisher," said Devesh Agarwal, aviation expert. "But it would be a difficult business for an airport like BIA as Kingfisher is based in Bangalore and it is a dominant customer of the airport."
"You see everybody is in distress today, and this is the time to share the distress and that is exactly how we are trying to convince them," said the source. "After all Kingfisher is a reputed brand and we request them to bear with us."
Money facts
>>Kingfisher owes Rs 35 crore to BIA towards airport charges
>>Rs 30 crore to AAI, Bangalore branch, as ATC fee
Source: http://www.mid-day.com/news/2008/nov/211108-Kingfisher-airlines-postponing-payment-of-dues-Bangalore-private-airports-flights-ban.htm
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