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No 'Flying High' for Kingfisher till dues are cleared

DailyBhaskar.com   |  Dec 11, 2012, 16:09PM IST
Mumbai: Mumbai International Airport Ltd (MIAL) has seized at least seven Kingfisher Airlines (KFA) aircraft for non-payment of airport dues.
MIAL shall not allow these aircrafts to be flown untill the company clears its pending dues. Kingfisher has already been served two notices demanding clearance of dues totalling Rs. 53 crore. The dues relate to parking charges, navigation and other services offered by MIAL in the normal course of airlines operations.
"We have seized one ATR aircraft of the Kingfisher Airlines as the carrier has failed to clear our dues," Mumbai service tax commissioner SK Solanki. The beleaguered airline owes around Rs190 crore to the Service Tax Department, of which Rs127 crore are under litigation.
KFA has been grounded since Oct 1 due to financial and labour problems. Later that month, its flying licence was also suspended by the Directorate General of Civil Aviation.
MIAL has sent at least two notices with specific deadlines to clear the dues, specifiying that it would not permit KFA aircraft to operate from Mumbai airport otherwise, the official said.
KFA problems escalated with the Oct 1 strike call by a section of its pilots and aircraft maintenance engineers over non-payment of salaries and other dues since March.
A consortium of 17 lenders, led by the State Bank of India, had set a deadline of Nov 30 for KFA to organise a minimum Rs.5,000 crore working capital before its plea for additional working capital loans could be considered.
(with agency inputs)


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