Rs 8-10 cr: Kingfisher Airlines' unpaid dues to hotels
Published on Wed, Apr 29, 2009 at 18:51 , Updated at Wed, Apr 29, 2009 at 22:25
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Kingfisher Airlines has defaulted on payments to many three- and four-star hotels. Hotel industry sources say Kingfisher Airlines owes Rs 8-10 crore to the hotel sector. Hotels, which cater to Kingfisher Airlines in Mumbai are Royal Orchid Hotels, Pride Hotels, Sahara Star and Airport International Hotel.
Here is a verbatim transcript of Neha Pandey’s comments on CNBC-TV18. Also watch the accompanying video.
Kingfisher Airlines has defaulted on payments to many three- and four-star hotels. Hotel industry sources tell us that Kingfisher Airlines alone owes Rs 8-10 crore to the hotel sector. Hotels which cater to Kingfisher Airlines in Mumbai are Royal Orchid Hotels, Pride Hotels, Sahara Star and Airport International Hotel. Well-placed sources at Royal Orchid hotel and Pride Hotel told us that Kingfisher Airlines owes Rs 4.5 crore to Royal Orchid and Rs 1.5 crore to Pride Hotels.
Just a month back, Mumbai-based hotel Water Stones, which is a part of the Gordon House chain, terminated its contract with both Jet Airways and Kingfisher Airlines due to payment issues. Sources say that airlines are allowed a 30-day credit period to pay back hotels but Kingfisher Airlines now wants this credit period to be extended to eight months.
Room rates that are offered by these hotels are around Rs 6,000-7,000 while airlines already get a discount of nearly Rs 2,000. But now Kingfisher Airlines wants a further discount on the accumulated amount.
KF also bounced a 77Crore Cheque to Airport Authority of India according to the Economic Times Today.