Playing down the Mumbai Airport decision asking Kingfisher to operate under cash-and-carry mode from Mallya said there was nothing "big" about it and the airline would fly full schedule.
Playing down the Mumbai Airport decision asking Kingfisher Airlines to operate under cash-and-carry mode from tomorrow, promoter Vijay Mallya today said there was nothing "big" about it and the airline would fly full schedule.
As per the MIAL's decision, Kingfisher Airlines will have to pay Rs 60 lakh daily for operating flights, if it fails to clear about Rs 90-crore of dues by December 3.
"Everybody has different credit terms for customers. Passengers in this country have to first pay for tickets before they travel. That's also cash and carry. When we advertise on newspaper or channel we also have to pay, that's also cash and carry".
"I don't understand what's this big thing about cash and carry. If we have pay on weekly or daily basis, people pay. And Flights will operate...we will operate the full schedule," Mallya told reporters here.
The development comes amid reports that even the state-run Airport Authority of India has threatened to put the airline -- which is sitting on a debt estimated at around Rs 12,000 crore -- on cash-and-carry mode.
The airline owes Rs 240 crore to the national airports operator.
Airlines usually pay monthly charges to the airport operators. But under the cash-n-carry mode, Kingfisher, which operates maximum flights from Mumbai and Delhi, will have to make daily payments.
Kingfisher is struggling to meet its working capital needs, and has sought relief from lenders. It owes close to Rs 7,060 crore to 14 banks, and they are currently assessing the viability of the airline.
Kingfisher reported a net loss of Rs 469 crore for the September quarter, though there was a 10.2 percent rise in revenues at Rs 1,528 crore.
The loss was on account of massive spike in aviation fuel prices, and inability to hike fares due to competition.
According to industry experts, the airlines are currently selling tickets at Rs 900 discount per seat.
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