AAI wants Kingfisher to clear dues before resuming flights

The Airports Authority of India (AAI) has written to the Directorate General of Civil Aviation (DGCA) to not revoke Kingfisher Airlines's licence unless it clears the former's dues of around Rs 273 crore.

The DGCA has suspended KFA's licence on grounds of operational inefficiencies. The airline is expected to submit a comprehensive revival plan so that its licence is revoked.

AAI says, it has taken several steps earlier to recover its dues from KFA but nothing has helped so far.

It is also believed that Bangalore Airport, Delhi and Hyderabad airports may have raised issues over KFA’s pending dues.

VP Agrawal, chairman, AAI who was in Mumbai recently had said he may even look at exploring legal action if the airline fails to clear dues.

"Unless, KFA comes up with a concrete revival plan, we will not allow them to operate at our airports," Agrawal had said. He expressed concern on the airline's inability to pay dues to it since a long time and added that greater is his concern for banks which have already shown KFA as sub-standard asset-- a category of non-performing assets (NPAs)and made the necessary provision for it. A loan account turned sub standard when it stops repaying for 90 days. Banks have to categorize the same account as doubtful, another level of NPA, if it does repay for one year. 

Also, nothing is clear at this point of time whether KFA will manage to clear AAI dues. Agrawal had also said that he has written to the Directorate General of Civil Aviation (DGCA) that the airline's revival plan should include time frame and details on payment to service providers and airports.