Private Airlines to Pay Penal Interest On Defaulting

Indian Ministry of State for Civil Aviation, informed that the total amount of penal interest raised on those private airlines which have been found defaulting in payment of airport usage fee to Airports Authority of India (AAI) during the last three years and the current year, works out to Rs. 115 crore approximately. 

The details of dues of major private airlines are as under;
RS In Crores

AIRLINES       31.03.2012      31.03.2013      31.03.2014          Apr-June 2014

Spice Jet        Rs 44.16        Rs. 77.30       Rs. 132.45        Rs. 110.86

Jet Group       Rs 140.88      Rs. 102.39      Rs. 68.07         Rs. 93.07

Kingfisher       Rs 197.81      Rs. 202.48      Rs. 172.69       Rs. 172.69

Interest on delayed charges is levied by Airports Authority of India (AAI) @ 12% per annum on traffic charges as per its approved credit policy.

The dues are monitored on regular basis and in case of delay, AAI issues notice to the airlines to settle the dues. Penal interest is being charged on account of delay in the settlement of the bills. In respect of Kingfisher, which has closed its operations, a  court case has been filed in the High Court of Mumbai. Security deposit is being taken from the private airlines and in cases where delay persists, besides en-cashing the security deposit, the defaulting airlines are put up on cash and carry basis.