Tuesday 11 December 2012

Pay dues or vacate, Mumbai airport tells Kingfisher


New Delhi, Dec 11:  
In what could spell more trouble for the cash-strapped Kingfisher Airlines, the Mumbai airport has asked it to pay dues worth Rs 50 crore or vacate the space it has at the airport.
Sources confirmed to the Business Line that a communication had been sent to the airline to clear its dues.
The letter, however, is not an eviction notice but a reminder to the airline company to settle its dues.
Mumbai airport is one of the largest operating bases for Kingfisher Airlines.
A consortium headed by the GVK Group is undertaking the modernisation of Mumbai airport.
Meanwhile, the airline has clarified to BSE that while it was in discussion with various investors, including Etihad Airways, for equity investment, no agreement “has been reached either with Etihad or any other airline and the matters are merely at a negotiation stages”.
The statement adds that the company had been attempting to raise the much-needed capital over the last two years since the shareholders approved it.
The Kingfisher Airline stock ended almost five per cent higher on BSE at Rs 15.67 amid reports that it had concluded a deal with Etihad for a 48 per cent stake sale.
The airline, which has an outstanding of over Rs 8,000 crore, suspended operations on October 1, after engineers refused to certify its aircraft as being safe to operate.
On October 20, the Directorate General of Civil Aviation suspended its operating licence.
Recently the airline promoter, Vijay Mallya, met the Directorate General of Civil Aviation and indicated that an investor was likely to be announced before December 31 when the licence comes up for renewal.
The Service Tax Department has impounded an ATR aircraft of the airline for failing to meet tax dues of around Rs 63 crore.

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