Kingfisher to pay Rs 60 lakh a day to use Mumbai Airport

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Kingfisher to pay Rs 60 lakh a day to use Mumbai Airport
Cash-strapped Kingfisher Airlines again kept on cash-and-carry basis by Mumbai Airport on Thursday.

Mumbai International Airport Pvt. Ltd. (MIAL) sent a notice to Kingfisher Airlines on Thursday saying, it will have to pay Rs 60 lakh a day for using airport services like parking and landing of aircraft.

Earlier, Kingfisher used to enjoy the benefit of credit-cycle like all other airlines do, where they can pay their dues mid-month or month-end. Kingfisher has not clear its dues to MIAL from past six months and now the payment figure have been mounted to Rs 90 crore, so the airline have been asked to be on cash-and-carry basis to use airport services.

This is the second time after eight months, the airline has been kept on cash-and-carry by MIAL.

The company reported a net loss of Rs 468 crore for the second quarter ended September 30 owing to higher fuel costs and low profit margins. It has been negotiating with the banks to raise in loan limits to meet its working capital requirement.

Increase in the prices of aviation fuel by 3.7% w.e.f December 1 is another blow for the airlines who have been suffering losses.

Vijay Mallya, recently said, they are planning to directly import jet fuel to cut costs.

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