Kingfisher Airlines owes Rs 950 cr to PSU oil firms

Vijay Mallya-owned Kingfisher Airlines owes over Rs 950 crore to state-run oil companies in unpaid jet fuel bills, Petroleum Minister Murli Deora said today.

Kingfisher owed "Rs 37.36 crore to Indian Oil Corp, Rs 598.78 crore to Hindustan Petroleum Corp and Rs 314.32 crore to Bharat Petroleum Corp", he said in a written reply to a question in Rajya Sabha here.

"The outstanding dues of Kingfisher Airlines as well as other airlines had started accumulating during the year 2008-09 because of the sharp rise in prices of Aviation Turbine Fuel in line with the crude oil prices to record highs during April to September," he said.

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, Deora said. "These include putting on 'cash and carry' and interest is recovered on all overdue payments."

"The issue of outstanding dues was also taken up with the Ministry of Civil Aviation which has advised the airlines to clear their outstanding dues promptly," Deora added.