Airports Authority looking at options to recover KFA dues

Moneycontrol Bureau

The Airports Authority of India (AAI) is looking at options of recovering Rs 300 crore which Kingfisher Airlines owes it for using airport infrastructure. V.P. Agrawal, chairman, AAI 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," said Agrawal who further said that he has written to the airline to vacate hangars at Kolkata and Chennai airports. The authority has seized its planes in a bid to pressurise the airline to pay up.

Agrawal 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 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.