13 August 2010;dailypioneer.com:New Delhi:Even as Government raised petroleum prices putting a lot of burden on State owned marketing companies and common man, it did precious little to recover outstanding fuel bills from the top two private airlines of India — Rs 960.15 from Jet Airways and Rs 814.49 crore from Kingfisher. As per reports, such is the financial state of Kingfisher Airlines that GMR Group has decided to put the airline on cash and carry mode from next week for payment defaults. Interestingly, if this would have been the case with other companies, they would have been declared defaulters and their assests disposed off to recover the dues. But, here this is not the case. What a paradox! In a written reply, Minister of State for Petroleum and Natural Gas Jitin Prasada, on Thursday said that Jet Airways had the highest outstanding of Rs 960.15 crore as on June 30 towards State-owned fuel retailers, while Kingfisher had Rs 814.49 crore in unpaid bills. Jet owes Rs 830.4 crore to Indian Oil, Rs 129.74 crore to Bharat Petroleum and Rs 0.01 crore to Hindustan Petroleum. Kingfisher owes HPCL Rs 536.04 crore, BPCL Rs 248.55 crore and IOC Rs 29.9 crore. Civil Aviation Minister Praful Patel also recently said in Parliament that as on June 2010, out of total dues of Rs 304.65 crore from private airlines to AAI, Kingfisher owed Rs 184.87 crore followed by Jet Airways (together with JetLite) at Rs 50.99 crore. While Kingfisher Airlines has over Rs 6,000 crore debt on its books, Jet Airways has a debt of about Rs 13,500 crore. Experts say that despite high economic growth these two airlines will take some more time to recover because of their huge debt burden. Probably, keeping the huge debt burden of top two airlines of India in mind RBI is mulling debt restructuring package for the aviation sector. Meanwhile, SBI Chairman OP Bhatt on Thursday said it was right time aviation companies raised equity but added that mandate is required from the RBI. He also added that banks are in discussion with the apex bank in this regard, but ruled out corporate debt restructuring (CDR) as an option. Prasada informed Parliament that HPCL has put Kingfisher Airlines on cash and carry mode since July 1 while BPCL has filed a winding up petition in the Mumbai High Court against the Vijay Mallya- owned company. “Recovery is being made by BPCL in line with consent terms between BPCL and Kingfisher Airlines before the court in November 2009 whereby the entire dues are to be cleared by November 2010,” he added. In all, the six private airlines in the country owe Rs 1,887.82 crore to the oil companies. Outstanding of Spicejet (Rs 74.5 crore), Go Air (Rs 18.8 crore), Indigo (Rs 0.6 crore) and Paramount Airways (Rs 19.28 crore) is marginal compared to what the giants Jet and Kingfisher owe to the oil firms.
Nothing surprising ! We Pay for everything including, Like CWG scams, keeping the politicians alive. Wheat grains bought by Govt. with public money & its rotting. Salaries of MPs & Public servents. What do we get in return- clogged roads, No clean public toilets, No water, No electricity ! kingfisher boss having fun with our money. He must be sending free beer & booze to all in Govt. I guess !
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