4:21 am - Thursday August 21, 2014

Kingfisher Airlines in legal trouble over cheque bounces

 A consortium led by GVK, which India’s largest airport operator, has launched legal proceedings against the ailing Kingfisher Airlines. The legal proceedings have been launched after a slew of cheques issued by the airline were getting dishonored.

Kingfisher Airlines owes Rs. 60 crores to Mumbai International Airport Ltd or MIAL. The airline has not even paid the airport charges which include parking, landing and navigation for more than a year now.

During the year the airline issued various cheques worth Rs. 30 crore, but none of them were honored. In response, the MIAL has filed a suit in a Mumbai civil Court last week after a cheque of Rs. 5 crore issued by the airline bounced.

An official from MIAL, who did not wish to be identified said, “This has been going on for a while and the airport operator thought the time has come to take legal action”. Moreover, this is the first time an airport operator has taken an airline to the courts for the non-payment of dues. In the past the Airports Authority of India ad threatened to take legal action as the airline owed Rs. 272 crores. Kingfisher even owes Rs. 80 crore to GMR operated Delhi International Airport.

 

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