Kingfisher, BPCL resolve pending dues

Vijay Mallya-owned Kingfisher Airlines has resolved its long-pending aviation turbine fuel (ATF) payment dispute with Bharat Petroleum through an out-of-court settlement.

The airline will pay Rs 40 crore within 12 days from today and the rest in instalments within a year. The total dues are Rs 314 crore and the airline will also pay interest on this, said a BPCL official.

The airline was not getting any supply from BPCL for the past six months due to non-payment of the dues.

Meanwhile, Kingfisher denied media reports of handing over “pink slips” (dismissals) to any trainee co-pilots. “We categorically deny that Kingfisher has given any pink slips to any trainee co-pilots,” a release from the airline said.

Kingfisher Airlines reported a net loss in the second quarter of the current financial year at Rs 418.8 crore, down 13 per cent from Rs 483.25 crore during the same period last year. It also incurred an operational loss of Rs 336 crore The airline said technical issues also led to grounding of aircraft, causing revenue loss and hence a negative impact on the bottom line.