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Government instructs AAI to act against defaulting airlines

The government yesterday instructed the Airport Authority of India (AAI) to take all possible steps, including legal action, against defaulting airlines to recover total dues of Rs 1, 101.97 crore. According to an Agencies report, in a written reply to a question raised in the Rajya Sabha, the Civil Aviation Minister, Praful Patel said that certain airlines have been settling their dues on time. “Government has instructed AAI to take all possible steps, including legal actions if warranted against the defaulting airlines,” added Patel.

Patel also informed that Air India owed Rs 739.50 crore to AAI, while private carrier Air Deccan-Kingfisher Airlines had dues of Rs 286.62 crore, Jet Airways/JetLite Rs 32.78 crore, SpiceJet Rs 15.76 crore, Paramount Airways Rs 12.5 crore, Interglobe Aviation Rs six crore and GoAir Rs 8.81 crore. Further adding that several airlines, including international carriers had outstandings to privatised airports- Delhi International Airport Ltd (DIAL) Rs 84.50 crore as on December 15, 2008; Mumbai International Airport Ltd (MIAL) Rs 86.54 crore; Hyderabad International Airport Ltd (HIAL) Rs 48.75 crore and Bangalore International Airport Ltd (BIAL) Rs 41 crore. Patel also stated that due to cut in flights and passenger traffic there has been a reduction in the revenue from airport charges for AAI and other private airport operators.

“AAI has a decrease in revenue to Rs 228 crore during April to September 2008 compared to the corresponding period in 2007. MIAL’s aeronautical revenue has been on lower side for April-November 2008 period by about Rs 79.83 crore compared to the same period last year. HIAL saw a decline in total revenue by 15 per cent. While DIAL has indicated reduction in revenue of Rs 50 crore for the year 2008-2009 as well as BIAL has been impacted to a certain extent.”

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