Mallya plays down Mumbai Airports' cash-and-carry decision
Playing down the Mumbai Airport decision asking Kingfisher Airlines to operate under cash-and-carry mode, promoter Vijay Mallya on Friday said there was nothing "big" about it and the airline would fly full schedule.india Updated: Dec 02, 2011 17:16 IST
Playing down the Mumbai Airport decision asking Kingfisher Airlines to operate under cash-and-carry mode from tomorrow, promoter Vijay Mallya on Friday said there was nothing "big" about it and the airline would fly full schedule.
As per the MIAL's decision, Kingfisher Airlines will have to pay Rs 60 lakh daily for operating flights, if it fails to clear about Rs 90-crore of dues by December 3.
"Everybody has different credit terms for customers. Passengers in this country have to first pay for tickets before they travel. That's also cash and carry. When we advertise on newspaper or channel we also have to pay, that's also cash and carry".
"I don't understand what's this big thing about cash and carry. If we have pay on weekly or daily basis, people pay. And Flights will operate...we will operate the full schedule," Mallya told reporters here.
The development comes amid reports that even the state-run Airport Authority of India has threatened to put the airline -- which is sitting on a debt estimated at around Rs 12,000 crore -- on cash-and-carry mode.
The airline owes Rs 240 crore to the national airports operator.
Airlines usually pay monthly charges to the airport operators. But under the cash-n-carry mode, Kingfisher, which operates maximum flights from Mumbai and Delhi, will have to make daily payments.
First Published: Dec 02, 2011 17:14 IST