Two airports ask Air India, Kingfisher to pay dues or halt operations

The Delhi and Hyderabad airports have put loss-making carriers Kingfisher Airlines and state-run Air India on "cash-and-carry" mode from June 1, which means the two firms would have to pay oustanding dues to the airports to continue operating flights.

The 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 Rs2.8 billion ($62 million) while Kingfisher has outstanding payments worth about Rs880 million, a GMR spokesperson said.

Hurt mainly by high cost of aviation turbine fuel, both carriers have been posting losses.

Kingfisher posted a net loss of Rs10.27 billion 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 Rs55.5 billion in 2009-10.