Cash-strapped Kingfisher Airlines will meet Airports Authority of India (AAI) officials again next week to seek a breather on the payment of airport charges. The airline, which accounts for dues worth over Rs 250 crore, was put on the cash-and-carry mode by the airports operator. It now has up to Rs 5 crore of dues over the cash-and-carry account.
On Friday, Kingfisher chairman Vijay Mallya met AAI chairman V P Agarwal to negotiate on the payment of the dues to the airports operator.
“We could not reach on an agreement today. There is a status quo till Tuesday. We will discuss the issue of providing a breather to the airline then,” said a senior AAI official, on the condition of anonymity.
Kingfisher Airlines accounts had been frozen by the income tax department, the official said. “We need to consider its problems, as the accounts have been frozen. We will try to work out some deal with the airline.”
The carrier also has to pay oil companies, which stopped fuel supply to the airline twice, owing to non-payment and delay in payments.
Kingfisher Airlines, which recorded a loss of Rs 1,027.40 crore in 2010-11 and Rs 1,175 crore for the first three quarters of the current financial year, has already accumulated losses of around Rs 6,000 crore.
Banks, too, have stopped offering credit to the airline and have declared Kingfisher a non-performing asset.