Nimish
Member
Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
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 Posted: Sun Apr 15, 2007 11:18 am Post subject: AAI to pvt airlines - Pay before using facilities |
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Pay before using facilities, AAI tells pvt airlines
From: http://timesofindia.indiatimes.com/NEWS/India/Pay_before_using_facilities_AAI_tells_pvt_airlines/articleshow/1911452.cms
| Quote: | Once bitten, twice shy. Even as Air Sahara is sold to Jet and becomes another casualty in the competitive aviation sector, the Airports Authority of India has set in place mechanisms to see it doesn't get singed. That's what happened a decade back when new airlines fell by the wayside, leaving behind huge liabilities.
This time, AAI has been smarter — it has decided not to give credit to airlines. It will take a security deposit from private airlines based on the projected billing for two months. "This deposit is more than the actual billing and bolsters our efforts to get back dues," says an AAI source. AAI has a fortnightly billing with airlines and in case of consistent delay, takes up the issue with them. If airlines come with new schedules, routes and sectors, the security limit is increased.
And the security deposits with AAI in respect of private airlines is not small change (see box). Naturally, none would like to default with so much at stake. With steep fuel bills and thin margins, only those with deep pockets can survive. The government, too, has put in place measures to make operators financially stronger.
The equity base for private scheduled operators was raised from Rs 30 crore to Rs 50 crore with a minimum fleet of five planes within a year and that for those owning five small aircraft was doubled from Rs 10 crore to Rs 20 crore. But what if airlines don't pay up? They will not be given parking slots, says the source.
But that situation hasn't arisen as, by and large, airlines have been paying up and in case of delay, the case is pursued with them. Even for non-scheduled carriers, including charters, AAI's system is cash-and-carry, ie, for each landing, cash is paid by the airline or its ground handling agent. Credit isn't allowed. "Who will run after them once they leave the airport?" asks the source.
Past records show that East West dues to AAI as on 31.3.98 were Rs 1,787 lakh. This is in addition to Rs 262 lakh it owed to oil firms for aviation turbine fuel as on 31.1.99 and Rs 690 lakh (IATT dues as on 31.1.99). Modiluft Ltd dues were Rs 1,816 lakh, Rs 4,660 lakh and Rs 56 lakh respectively, while NEPC Airlines dues were Rs 2,100 lakh, Rs 2,000 lakh and Rs 342 lakh. Court cases in this regard are going on. But market conditions then were radically different, says Kapil Kaul, Centre for Asia Pacific Aviation. "It was a hostile environment. There were few regulations in place, leading to casualties." |
I wish the airlines could also turn this around by asking AAI to "provide service & facilities before charging for it". |
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