This Article is From May 27, 2011

Clear dues or halt operations: GMR to Air India, Kingfisher

Clear dues or halt operations: GMR to Air India, Kingfisher
New Delhi: After five of its Kerala flights were grounded when oil companies refused to supply fuel unless it pays its bills, there is more trouble brewing for Air India.

Delhi and Hyderabad airport operator GMR has given an ultimatum to Air India to pay airport charges if it wants to continue operations. A similar notice has been sent to Kingfisher Airlines as well.

Both Airlines are currently on cash and carry which means the airlines have to pay the airports each time they fly.

Air India owes the Delhi airport Rs 217 crore and the Hyderabad airport Rs 35 crore.

Earlier in the day, five Air India flights, including an international flight, were grounded in Kerala when oil companies stopped fuel supply to the airlines over non-payment of dues.

A compromise was later struck between the national carrier and the companies and they agreed to resume fuel supply after Air India agreed to pay outstanding dues.

The cash-strapped Air India owes about Rs 1300 crore to oil companies. It has been buying jet fuel on a daily basis since January this year.

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