Industry

AAI puts Air India on cash and carry at 4 airports, including Chennai

Air India flight at Chennai Airport. File

Air India flight at Chennai Airport. File   | Photo Credit: B. Velankanni Raj

The Airports Authority of India (AAI) has put Air India on cash and carry mode in the Ahmedabad, Bhubaneswar, Chennai and Kolkata airports from July 7owing to accumulation of dues for a long period. It means Air India will have to make payment on a daily or per flight basis for parking and landing purposes at these airports.

“The competent authority has approved to put the operations of Air India on cash & carry” basis.... with effect from 1 hrs of 7 July 2020. The above may please be brought to the information of all concerned officials...” the AAI said in a circular.

Responding to this, Air India asked the AAI to reverse this decision, as cash and carry would bring additional financial stress on its liquidity.

“As you are aware Air India is in stressed financial condition due to COVID-19. At this stage Cash & Carry would bring additional financial stress on Air India liquidity. You are requested to reconsider the above decision and give some more time for release of dues till the situation normalises for our flight operations,” Air India said in a letter.

“Air India has made a payment of ₹2 crore on July 2, 2020 and you are requested to settle dues for Ahmedabad, Bhubaneswar, Chennai & Kolkata effective July 7, 2020 against the payment of ₹2 crore. You are also requested to advise the station-wise adjustments are made for above ₹2 crore to avoid reconciliation issues in future,” the letter added.

Air India urged the AAI to advise the four airports to not to implement cash and carry effective midnight of July 6.

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Printable version | Aug 9, 2020 7:47:29 PM | https://www.thehindu.com/business/Industry/aai-puts-air-india-on-cash-and-carry-at-4-airports-including-chennai/article32000876.ece

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