Mumbai, Dec 1 (IANS) Vijay Mallya-led Kingfisher Airlines Thursday assured its passengers that all its operations to and from Mumbai would continue uninterrupted, even as the city’s airport operator threatened to put the airline on a cash-and-carry basis for non-payment of dues.
‘We would like to reassure all our guests that all our flights will continue to operate, as per the revised schedule published on our website,’ the airline’s vice president (corporate communications) Prakash Mirpuri said in a statement.
‘As a matter of policy, we do not comment on supplier and partner relationships,’ Mirpuri added.
The assurance comes in the wake of GVK-led Mumbai International Airport Ltd’s (MIAL) threats of placing the airline on a cash-and-carry basis by Saturday if the carrier failed to clear Rs.90 crore in dues which are pending for the last six months.
In ‘cash-and-carry’ mode, an airline has to pay upfront every time it purchases services and fuel from vendors, as credit privileges of the company are revoked.
In the case of airports, an airline has to pay for infrastructure it is using like terminal building, lounges and operating charges like parking, housing and landing (PHL).
State-run Airports Authority of India (AAI) has already put Kingfisher Airlines on cash-and-carry basis for all of its airports.
The company currently owes Rs.240 crore to AAI.
The airline also owes huge amounts to oil companies and GMR Group.
The airline has not posted any profit since its launch five years ago and reported a net loss of Rs.1,027 crore last fiscal and Rs.468.66 crore in the last quarter.
