AAI puts GoAir on 'cash and carry' basis over non-payment of dues

The Airports Authority of India has decided to put GoAir on "cash and carry basis" from Tuesday because of non-payment of dues, meaning the low-cost airline will have to pay charges daily at AAI airports to operating flights from there, an official said.

The official said the AAI issued an order to its regional executive directors on Monday, which said, "The competent authority has approved to put the operation of GoAir on cash and carry basis out of all AAI airports with effect from 0001 hrs of 11th August 2020".

"The same may also be informed to the concerned officials of GoAir at respective stations/airports/regions to make necessary arrangements to pay the required amount at the respective stations for day-to-day operation," the order added.

An airline has to pay various charges -- air navigation, landing, parking etc -- to AAI, which works under the Civil Aviation Ministry, to use facilities at any of its more than 100 airports.

The airports in Delhi, Mumbai, Bengaluru and Hyderabad are managed by private companies and not by AAI.

"GoAir is engaged in constructive discussions with AAI and would like to assure our customers that there is no impact on GoAir's operations. GoAir flights will continue to be operated as normal at all airports, the airline's spokesperson said.

The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the pandemic.

All airlines in India have taken cost-cutting measures such as pay cuts, leave without pay and firings of employees in order to conserve cash.