BIAL initiates criminal proceedings against Kingfisher Airlines for passenger fee dues

Alleges the airline owed Rs 70 cr in passenger service fee to the company that operates the Bengaluru International Airport

Bangalore International Airport Ltd (BIAL) has initiated a criminal breach of trust proceedings against grounded Vijay Mallya-led Kingfisher Airlines. BIAL has alleged the airline owed Rs 70 crore in passenger service fee to the company that operates the Bengaluru International Airport. Kingfisher is alleged to have collected the fee when issuing its tickets but not paid it to the BIAL, which would have transferred the amount to the government.

A spokesperson of the UB Group said, "We are not aware and have neither been served any papers. It is, therefore, impossible to respond on a matter we are unaware of."

Passenger service fee is a charge by the airport authority to an airline for the use of the terminal, runway, emergency services and security facilities. This non-refundable variable charge may also include the cost of passenger and ramp handling at the airport.

The BIAL had earlier sued the United Breweries Holdings Ltd, promoter of Kingfisher Airlines, for its guarantee on dues of approximately Rs 75 crore in user development fee and passenger security fee, also collected by an airline at the time of issuing a ticket. UBHL is said to have promised to pay BIAL Rs 15 crore, which the company has not received till date.