http://economictimes.indiatimes.com...-kingfisher-airlines/articleshow/12376941.cms
23 MAR, 2012, 09.12AM IST, SAURABH SINHA,TNN
No takeoff without pay, private airport players tell Kingfisher Airlines
NEW DELHI: Private airports will now allow cash-strapped Kingfisher to operate flights only after paying for each of them. Like the Airports Authority of India (AAI), the GMR and GVK Groups that manage Delhi, Mumbai, Bangalore and Hyderabad (from where Kingfisher is stopping operations) have also asked Kingfisher to enhance payments - despite a reduced schedule - to recover huge dues.
Kingfisher owes Rs 265 crore to AAI; Rs 55-60 crore to GMR Group and about Rs 75 crore to GVK. While the airline was put on cash-and-carry at almost all airports late last year, it has stopped paying even the daily amount for the past 15-20 days. Now these three airport operators have asked Kingfisher to not only pay the daily amount before operating flights, but also increase the payment to recover dues as the threat of a closure looms large over the airline. Senior officials at AAI and GMR confirmed this move, while GVK did not comment.
"Unlike airlines that would have a windfall gain from Kingfisher's closing down, our interest was in ensuring its survival. We have been very supportive so far and not pressed for payment of the daily amount so far as we did not want to act as the catalyst for the airline shutting down. But now we have to now try to get as much of our dues along with daily flight bill as possible ," said the chairman of a big airport group.
Airports are also dusting an old judgment that AAI secured after a private airline shut down in early 1990s. "That airline also had huge dues to us and everyone else. The leasor of its aircraft came to the airport with a team to repossess the plane and take it to their country. We deflated the tyres, refused to refuel it and told the leasors that airport must be paid before they can fly away with the plane. This battle reached court and we won," said an airport official.
The airline has been saying it would maintain its truncated schedule and is in talks with investors to raise funds. While Kingfisher has stopped flights to Hyderabad, it is now vacating airport space used for office purpose at some places. "We have asked our officials to let them vacate airport space but after giving signed letters that the airline owes this certain amount," said an official.
The Directorate General of Civil Aviation ( DGCA), whose report is awaited by the aviation ministry for further action on the airline, is learnt to have sought latest information on Kingfisher's finances and dues to various agencies. Once it gets that input from various stakeholders, a comprehensive report will be sent to the ministry.
http://economictimes.indiatimes.com...ingfisher-ajit-singh/articleshow/12370915.cms
22 MAR, 2012, 08.55PM IST,
Vijay Mallya will have to take call on closing Kingfisher: Ajit Singh
NEW DELHI: Virtually ruling out closure of debt-laden Kingfisher Airlines (KFA), Civil Aviation Minister Ajit Singh today said promoter Vijay Mallya will have to take call on shutting down the business.
"Rules say that we cannot cancel licenses of an airline as long as it has five planes and certain equity," Singh told a private news channel in an interview.
The Minister said if Kingfisher closed down it would be inconvenient for fliers as well as employees, as "KFA flies to many destinations where no other airline flies, and it also provides employment to many (people)."
"It will be Mallya's call if he wants to remain in business," he said, adding "if passenger safety is jeopardized, KFA can't fly."
Kingfisher Airlines promoter Mallya has met Singh to apprise him of the ailing airline's problems and has also submitted a curtailed summer schedule of about 100 daily flights with 20 aircraft to the Director General of Civil Aviation, starting from March 25.
On the meeting, Singh said that KFA has cut down flights to 100 from 400 and also slashed the number of aircraft it owned, from 64 to 16.
The crisis-hit Kingfisher, which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore.
Speaking on Air India, Singh said his ministry is holding discussion on the Rs 4,000 crore equity infusion and the final restructuring package would be sent to the Cabinet soon for approval.
23 MAR, 2012, 09.12AM IST, SAURABH SINHA,TNN
No takeoff without pay, private airport players tell Kingfisher Airlines
NEW DELHI: Private airports will now allow cash-strapped Kingfisher to operate flights only after paying for each of them. Like the Airports Authority of India (AAI), the GMR and GVK Groups that manage Delhi, Mumbai, Bangalore and Hyderabad (from where Kingfisher is stopping operations) have also asked Kingfisher to enhance payments - despite a reduced schedule - to recover huge dues.
Kingfisher owes Rs 265 crore to AAI; Rs 55-60 crore to GMR Group and about Rs 75 crore to GVK. While the airline was put on cash-and-carry at almost all airports late last year, it has stopped paying even the daily amount for the past 15-20 days. Now these three airport operators have asked Kingfisher to not only pay the daily amount before operating flights, but also increase the payment to recover dues as the threat of a closure looms large over the airline. Senior officials at AAI and GMR confirmed this move, while GVK did not comment.
"Unlike airlines that would have a windfall gain from Kingfisher's closing down, our interest was in ensuring its survival. We have been very supportive so far and not pressed for payment of the daily amount so far as we did not want to act as the catalyst for the airline shutting down. But now we have to now try to get as much of our dues along with daily flight bill as possible ," said the chairman of a big airport group.
Airports are also dusting an old judgment that AAI secured after a private airline shut down in early 1990s. "That airline also had huge dues to us and everyone else. The leasor of its aircraft came to the airport with a team to repossess the plane and take it to their country. We deflated the tyres, refused to refuel it and told the leasors that airport must be paid before they can fly away with the plane. This battle reached court and we won," said an airport official.
The airline has been saying it would maintain its truncated schedule and is in talks with investors to raise funds. While Kingfisher has stopped flights to Hyderabad, it is now vacating airport space used for office purpose at some places. "We have asked our officials to let them vacate airport space but after giving signed letters that the airline owes this certain amount," said an official.
The Directorate General of Civil Aviation ( DGCA), whose report is awaited by the aviation ministry for further action on the airline, is learnt to have sought latest information on Kingfisher's finances and dues to various agencies. Once it gets that input from various stakeholders, a comprehensive report will be sent to the ministry.
http://economictimes.indiatimes.com...ingfisher-ajit-singh/articleshow/12370915.cms
22 MAR, 2012, 08.55PM IST,
Vijay Mallya will have to take call on closing Kingfisher: Ajit Singh
NEW DELHI: Virtually ruling out closure of debt-laden Kingfisher Airlines (KFA), Civil Aviation Minister Ajit Singh today said promoter Vijay Mallya will have to take call on shutting down the business.
"Rules say that we cannot cancel licenses of an airline as long as it has five planes and certain equity," Singh told a private news channel in an interview.
The Minister said if Kingfisher closed down it would be inconvenient for fliers as well as employees, as "KFA flies to many destinations where no other airline flies, and it also provides employment to many (people)."
"It will be Mallya's call if he wants to remain in business," he said, adding "if passenger safety is jeopardized, KFA can't fly."
Kingfisher Airlines promoter Mallya has met Singh to apprise him of the ailing airline's problems and has also submitted a curtailed summer schedule of about 100 daily flights with 20 aircraft to the Director General of Civil Aviation, starting from March 25.
On the meeting, Singh said that KFA has cut down flights to 100 from 400 and also slashed the number of aircraft it owned, from 64 to 16.
The crisis-hit Kingfisher, which has a total debt of about Rs 7,057 crore and accumulated losses of about Rs 6,000 crore.
Speaking on Air India, Singh said his ministry is holding discussion on the Rs 4,000 crore equity infusion and the final restructuring package would be sent to the Cabinet soon for approval.
