Indian carriers request instalment scheme to pay dues
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Indian airlines are calling for government intervention so that they can pay airport dues in instalments, just like they pay for fuel, a report said.
The Economic Times reported that Kingfisher Airlines Chairman, Vijay Mallya, has taken the lead in writing to the Airports Authority of India (AAI) to allow them to clear dues in instalments.
The move comes after AAI set 24 October as the deadline for Kingfisher to clear dues.
The report said last week, the petroleum ministry had formalised a ‘relief package’ to airlines, allowing them to pay their dues in monthly instalments and also enhanced the credit period to 90 days.
“The Federation of Indian Airlines (FIA) has requested similar payment terms from the AAI. It has also urged the state-owned airport operator to reduce landing and parking charges,” a Kingfisher Airlines spokesperson was reported saying.
The airline industry is expected to suffer losses to the tune of US$1.5 billion during 2008-09. “There is no denying that airlines are in a financial crisis. However, they are responsible for the losses to a large extent. The government should provide financial relief to airlines, but why should it help the industry if they don’t show concern?” a top official in the Civil Aviation Ministry said.
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