Kingfisher Airlines, Jet Airways [Get Quote] and state-owned Air India have started this financial year with accumulated dues of Rs 4,000 crore (Rs 40 billion) to oil companies and airports.

Dues to the Airports Authority of India, private airports and oil companies IOC, BPCL [Get Quote] and HPCL [Get Quote] were to have been cleared by March 31, under the government's mandate.

Industry figures show that the three airlines are collectively projected to make operating losses of Rs 5,000 crore (Rs 50 billion).

Although oil companies said they were looking at various options including legal action, officials at the civil aviation ministry expressed their inability to advise private carriers on their dues. "We are, however, looking at how Air India can clear its dues," said a top civil aviation ministry official.

Airport developers say they have no alternative but to pursue airlines to pay. Executives from the AAI, Mumbai International Airport Ltd and GMR Hyderabad International Airport Ltd, among others, told Business Standard that the three airlines owed them roughly Rs 1,250 crore (Rs 12.5 billion).

AAI officials said Air India is one of the main defaulters to airport operators. Industry sources said airline dues to MIAL have crossed Rs 100 crore (Rs 1 billion) from around Rs 80 crore (Rs 800 million) in December. A GHIAL spokesperson, however, said airline dues have more than halved to Rs 20 crore (Rs 200 million) in the past three or four months.

The more complicated problem concerns aviation turbine fuel dues. On October 23, oil companies gave airlines a breather on dues worth Rs 2,900 crore (Rs 29 billion) which were to be paid in six monthly instalments till March 31. Subsequent purchases from the date of that announcement would be given credit of 90 days. Sources said airlines were defaulting both on installments and current purchases.

Sources from IOC, HPCL and BPCL said Kingfisher Airlines, which was the major defaulter in terms of oil dues, still owed them more than Rs 1,200 crore (Rs 12 billion).

Kingfisher owes HPCL Rs 450 crore (Rs 4.5 billion) and BPCL around Rs 650 crore (Rs 6.5 billion) and IOC close to Rs 90 crore (Rs 900 million).

"IOC and more recently BPCL have put Kingfisher on a cash-and-carry model, which is why IOC's exposure to Kingfisher has come down drastically. However, HPCL is still selling them fuel on credit. Both HPCL and BPCL have very little exposure to Jet," said an industry source. A top HPCL official said a part of Kingfisher's dues are covered by bank guarantees.

Last month Kingfisher Airlines asked the oil companies to extend the due date beyond March 31.

"As far as Air India is concerned, the companies get assurance from the fact that it is a public sector company," said an oil company executive.

Meanwhile, ATF prices are down 58 per cent from their August peak.