Kingfisher cheques in late, misses AAI a/cs

A CHEQUE issued by Kingfisher Airlines to the Airports Authority of India (AAI) for Rs 77 crore has bounced, highlighting the continuing financial woes of India's top airline in a sector reeling under heavy losses.
    The cheque issued by Kingfisher Airlines to the AAI towards clearing pending service charges has been dishonoured for the lack of funds, according to an official in the AAI's finance department who didn't want to be named. The Axis Bank cheque dated April 27 was sent for collection at the authority's HDFC Bank account in New Delhi on Tuesday, and later on Wednesday. The cheque bounced because of "insufficient funds".
    Kingfisher Airlines, India's largest private carrier by traffic, owes Rs 180 crore to AAI for various aeronautical charges on services delivered till March 2009 including landing, parking and housing; passenger service, route navigation facility, terminal usage and baggage Xray amongst others.
    When contacted, a Kingfisher Airlines spokesman said in a written reply: "Kingfisher Airlines is in full compliance with the mutually agreed terms for settlement of outstanding dues of the AAI. Any suggestion to the contrary is incorrect."
    However, a senior Kingfisher executive, who asked not to be named given the sensitivity of the issue, said that the cheque had indeed been issued to AAI. He refused to clarify anything further on the matter.
    Repeated attempts to contact an AAI official who is authorised to speak to the media were unsuccessful. AAI may encash Kingfisher's security deposit
KINGFISHER had earlier delayed its periodic payments to vendors including airport operators and jet fuel suppliers.
    "There are many airlines who owe us money and there have been cases when companies present their cheques signed for a later date. But this is the first time that such a high value cheque has been dishonoured,'' the AAI official said.
    AAI has retrieved the cheque from HDFC Bank, the official said, adding that the authority may encash the Rs 50-crore security deposit that Kingfisher has parked with AAI.
    Other domestic carriers too have delayed their payment to airport operators like Delhi International Airport Ltd and Mumbai International Airport Ltd and jet fuel suppliers such as Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum.
    The Indian aviation industry is faced with mounting losses due to falling

http://ways2trade.blogspot.com
Free SMS Calls on India Stock Market
DisasterAwareness | Health | Commodities

Earn decent money by receiving SMSes on your cell phone.  Free Signup!

Contact Me: