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Showing posts with the label CREDITORS DEBTS

Kingfisher Airlines Ltd must clear debts before it is allowed to Fly again

It is unlikely that Kingfisher Airlines will be able to restart operations any time soon. This is because the Airports Authority of India (AAI), the Government’s Service Tax Department and a consortium of banks are insisting that their dues be cleared before the airline is given permission to take to the skies again. Kingfisher owes Rs 400 crore to AAI and over Rs 7,500 crore to a consortium of 17 banks. Airline’s Chief Executive Officer Sanjay Agarwal had met the Directorate- General of Civil Aviation (DGCA) here last week and submitted a fresh proposal for restarting the airline. According to the proposal, UB Group would pump in Rs 650 crore in the airline over 10 months to facilitate restart of its operations. “There have been no negotiations between AAI and the airline. AAI has categorically indicated that it is not willing to put the airline on a cash and carry basis. With AAI not only operating airports around the country but also managing Air Traffic Management and Commu