Mumbai: Shares of Kingfisher Airlines fell by over 5% in morning trade on the Bombay Stock Exchange (BSE) Friday after Mumbai International Airport Ltd (MIAL) threatened to put the company on cash-and-carry mode from Saturday if it fails to pay up dues of around Rs 90 crore.
After a weak start, shares of the air-carrier lost further ground and fell by 5.66% to Rs 22.50 on the BSE.
However, the stock saw some of the initial losses pared in later trade and was being quoted at Rs 23.15, down 2.94% from its previous closing price, at 10:25 am.
Vijay Mallya, chairman of Kingfisher Airlines. Photo: AP
The development comes amid reports that state-run Airport Authority of India had also threatened to put the airline - which is sitting on a debt pile of over Rs 12,000 crore - on cash-and-carry mode.
The airline owes Rs 240 crore to the national airports operator and the move reportedly came after a cheque issued by Kingfisher bounced.
Airlines usually pay monthly charges to the airport operators. But under the cash-and-carry mode, Kingfisher - which operates most of its flights from the Mumbai and Delhi airports - will have to make daily payments.