New Delhi: The Airports Authority of India (AAI) that manages most of the airports in the country has asked debt-laden private airline Kingfisher Airlines to settle its dues without further delay, sources cited by the NDTV Profit.

For the past six months AAI allowed Kingfisher Airlines to operate on a cash-and-carry basis.

On January 9, 2012, AAI has received a notice from a lessor for the airline KfW Bankengruppe, to ground two planes of Kingfisher Airlines due to non-payment of dues.

"It is not possible for AAI to continue providing services in the absence of specific plan for settlement of accumulated dues," V P Agarwal, AAI chairman wrote in letter to the airline's chairman Vijay Mallya on 23 January 2012, cited by the NDTV Profit.

Kingfisher Airlines owes around Rs 2.55 billion to AAI as of 16 January 2012. This amount had accumulated since June 2011, when the airline started operating on a cash-and-carry basis. The airline also has debts of around Rs 70 billion.

Earlier in July 2011, the AAI had given the airline a three months period to clear its dues. But later the airline again requested AAI in November 2011 and asked AAI to allow operations of its flights.

Distributed by Contify.com