Kingfisher Airlines Owes Rs 950cr To PSU Oil Firms
Kingfisher Airlines, owned by Vijay Mallya, has to pay over Rs 950 crore to the government oil companies for the jet fuel bills. This information was given by the Petroleum minister Murli Deora, on Monday.
Kingfisher owed "Rs 37.36 crore to Indian Oil Corp, Rs 598.78 crore to Hindustan Petroleum Corp Ltd and Rs 314.32 crore to Bharat Petroleum Corp Ltd," he said in a written reply to a question in Rajya Sabha here.
"The outstanding dues of Kingfisher Airlines as well as other airlines had started accumulating during the year 2008-09 because of the sharp rise in prices of Aviation Turbine Fuel in line with the crude oil prices to record highs during April to September," he said.
The oil companies will take necessary action against the private air carrier, if the bills are not paid in the time. The actions will be taken based on the mutually agreed commercial terms "These include putting on 'cash and carry' and interest is recovered on all overdue payments."
"The issue of outstanding dues was also taken up with the Ministry of Civil Aviation which has advised the airlines to clear their outstanding dues promptly," Deora added.