Mumbai: Two Indian airports have put loss-making carriers Kingfisher Airlines and state-run Air India on “cash-and-carry” mode from 1 June, which means the two firms would have to pay outstanding dues to the airports to continue operating flights.
The Delhi and Hyderabad airports took the step “after continued deliberations with these airline companies failed to yield payments of outstanding dues from these airlines”, GMR Group, operator of the two airports, said.
Air India owes the two airports around Rs280 crore ($62 million) while Kingfisher has outstanding payments worth about Rs880 million, a GMR spokesman said.
Hurt mainly by high cost of aviation turbine fuel, both carriers have been posting losses.
Kingfisher posted a net loss of Rs1,027 crore for the year ending March.
Air India, which witnessed a pilots’ strike recently, has not yet disclosed its latest annual results. It posted a net loss of Rs5,550 crore in 2009/10.