Kingfisher can breathe
Kingfisher gets a breather for a little time.
It was a call they had to take. Its not clear from what I read in the press when they are going to repay the dues. But Kingfisher can now add fuel to its aircrafts by using the Cash and Carry format.
Cash and Carry format is as same as what we do in our daily lives. We go to a super market with a Debit or Credit card, pay the money for what we have got and go home. Similarly, Kingfisher would pay the OMCs (Oil Marketing Companies) the amount for the fuel purchased on the spot. No Credit.
This move is a time saver for Vijay Mallay to get more time to arrange for the much needed cash for his struggling airline.