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Kingfisher seeks time to pay hotel bills

Kingfisher seeks time to pay hotel bills
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First Published: Wed, Apr 29 2009. 10 53 PM IST
Updated: Wed, Apr 29 2009. 10 53 PM IST
Mumbai: India’s Kingfisher Airlines Ltd has defaulted on payments and owes around Rs8-10 crore to various hotels, people familiar with the matter said.
These hotels include Royal Orchid, Pride Hotel, Sahara Star and Airport International Hotel. Kingfisher Airlines didn’t reply to an email query.
The people said on condition of anonymity that the carrier has not paid about Rs4.5 crore to Royal Orchid and Rs1.5 crore to Pride Hotel.
Nearly a month ago, Mumbai-based Water Stones, a part of the Gordon House chain, ended its contract with both Jet Airways (India) Ltd and Kingfisher Airlines owing to payment issues.
The payments by Kingfisher Airlines to these hotels are due for at least six months and the firm wants the credit period be increased to eight months, the people said.
Airline firms are typically allowed a 30-day credit.
The airline also wanted a further discount on the accumulated amount. Room rates offered by most of these hotels range between Rs6,000 and Rs7,000, on which airlines get a discount of about Rs2,000.
cnbctv18@livemint.com
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First Published: Wed, Apr 29 2009. 10 53 PM IST