Cash-strapped Kingfisher Airlines owes state-owned Hindustan Petroleum Corp Ltd (HPCL) about Rs 518 crore in fuel bills, of which Rs 250 crore is overdue amount.
HPCL supplies almost all of Kingfisher requirement of jet fuel (ATF).
The airline owes Rs 517.96 crore including interest to HPCL as on February 29, Minister of State for Petroleum and Natural Gas, Mr R P N Singh said in reply to a question in Lok Sabha here on Thursday.
Of the Rs 517.96 crore outstanding that the Vijay Mallya— run airlines owes to HPCL against aviation turbine fuel (ATF) supplies, Rs 249.70 crore is over due or payments that are pending well past the last date of payment, he said.
“HPCL has suffered losses in terms of interest cost on the blockage of working capital due to shortfall in payments by Kingfisher Airlines,” Mr Singh said, adding the interest of Rs 84.98 crore for delayed payments up to December 2011 has been charged on the airlines.
Jet Airways owes Rs 718.74 crore to Indian Oil Corp and another Rs 179.48 crore to Bharat Petroleum Corp Ltd (BPCL) but none of this is overdue payment.
Go Airlines owes IOC Rs 54.16 crore and another Rs 1.95 crore to BPCL, he said adding Spice Jet owes IOC Rs 92.05 crore. None of these payments are overdue or outstanding beyond last date of payment.
“In case airlines fail to pay their dues, oil marketing companies take action for recovery of dues in line with the mutually—agreed commercial terms between them and the Airlines,” Mr Singh said. “The defaulting airlines are also put on ‘Cash and Carry’ and interest is recovered on overdue payments.”