Business - India;Mallya may not get relief on dues

Saurabh Sinha

NEW DELHI: Airlines may have been allowed to clear their huge oil dues in installments, but Kingfisher-Deccan combine is unlikely to get a similar fa
cility to clear its dues of about Rs 250 crore with the Airports Authority of India (AAI).

Kingfisher chief Vijay Mallya had written to the government, seeking for installments to clear this due. But this request hasn't gone down well with the aviation ministry and the troubled tycoon is unlikely to get his demand met.

"Apart from the national carrier's dues of Rs 653 crore with AAI that's an internal government matter, no private airline has big dues with the AAI. We can't allow EMIs just for the benefit of just one airline. Kingfisher has to tell us how it plans to clear this amount as AAI also has huge capex plans lined up that need cash flow," said a highly placed aviation ministry source.

Earlier, with regard to the oil issue , the ministry was careful while fighting for airlines as three biggest players-Jet, AIIA combine and Kingfisherwere involved. But AAI dues, as far as private airlines are concerned, involves mainly Kingfisher as other players' dues are very nominal.

Only relief, say sources, is airlines' current 15-day billing cycle may be extended to a month. Ministry had asked private airport developers whether they would be comfortable with arrangement. But response wasn't encouraging as developers too claimed to be under financial stress. According to statement made by aviation minister Praful Patel in Parliament late last month, AAI's dues were to the tune of about Rs 1,012 crore.