Blog | After Kingfisher is Jet Airways Next?

12

Mar
2012
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After Kingfisher is Jet Airways Next?

After freezing the bank accounts of beleaguered Kingfisher Airlines, the service tax department has now served a notice on Jet Airways to pay up about Rs 69 crore as dues soon or face similar consequences, but the airline said it would do so by Monday.

Chart: Jet Airways Quarterly Revenue, Expense, and Income (INR)

Jet Airways has not paid a total of about Rs 69 crore worth of dues for January and February which they collected during this period, official sources said.

The amount was to have been paid by March 6, they said, adding that if they did not reply to the notice soon, “we will have to go for freezing of their accounts. We have to talk to the banks in the process of assessing the number of accounts they have.”

When contacted, Jet’s Senior Vice President (Finance) Mahalingam Shivkumar told PTI, “There has been some delay due to hike in oil prices and other costs. We are effecting the payments by Monday. Everything will be normal then.”

There have been a major increase in costs including the hike in jet fuel prices, he said, adding “it is only a delay of about four days… it is like making a mountain out of a molehill.”

Source & Complete Article: http://timesofindia.indiatimes.com/business/india-business/Jet-Airways-asked-to-pay-dues-of-Rs-69-crore/articleshow/12211085.cms

 


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