Kingfisher seeks 10 more days to clear fuel tab at IndianOil

Kingfisher seeks 10 more days to clear fuel tab at IndianOil

Kingfisher seeks 10 more days to clear fuel tab at IndianOil

New Delhi: Tycoon Vijay Mallya’s Kingfisher Airlines Ltdhas sought a second extension of 10 days to pay state-run Indian Oil Corp. Ltd (IOC) after missing a 10 April date to settle the tab for jet fuel supplied by the refiner. The airline had sought the first extension after skipping a 31 March deadline to pay the firm.
The airline owes around Rs1,000 crore to oil marketing companies such as IOC, Hindustan Petroleum Corp. Ltdand
Bharat Petroleum Corp. Ltd (BPCL). Dues to IOC amount to around Rs90 crore.
“As of now, Kingfisherhas asked for another 10 days extension beyond 10 April. The company (IOC) has the option to encash the bank guarantee of around Rs65 crore given by the airline. They have also given some post-dated cheques. They are also yet to clear their dues with the other oil firms,” said a person familiar with the development, who did not want to be named.
Airlines such as National Aviation Co. of India Ltd-run Air India and Jet Airways India Ltd, too, had missed some payments due to oil firms, but owe much less.
A Kingfisher Airlines spokesman said the airline does not wish to comment on its relationship with suppliers.
India’s airlines are struggling with declining passenger traffic in the face of an economic downturn, overcapacity and intense competition. They are estimated to have posted a combined loss of $2 billion (Rs9,980 crore now) in the year ended 31 March.
In October, the Union government allowed the country’s three largest carriers—Air India, Jet Airways and Kingfisher Airlines—to pay dues amounting to Rs2,962 crore over a period of six months to oil marketing firms.
Kingfisher Airlines, which has said it plans to raise $400 million, is now in talks with banks such as State Bank of India to raise up to Rs3,000 crore in loans, according to previous reports.

Advertisements

~ by anand213 on April 16, 2009.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: