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AAI cracks whip on SpiceJet, puts airline on 'cash and carry' mode

While SpiceJet was to be placed on a 'cash and carry' mode from Thursday midnight, the proposal was deferred upon a request from the airline.

Topics
Airports Authority of India AAI | SpiceJet | Domestic airlines

Aneesh Phadnis  |  Mumbai 

spicejet
SpiceJet, which posted a loss of Rs 807 crore in fourth quarter of last fiscal, had asked AAI for time to work out the modalities for implementing the 'cash and carry' mode

The Airport Authority of India (AAI) has decided to put on a 'cash and carry' mode as the airline's pending dues have crossed Rs 200 crore.

While was to be placed on a 'cash and carry' mode from Thursday midnight, the proposal was deferred upon a request from the airline.

SpiceJet, which posted a loss of Rs 807 crore in fourth quarter of last fiscal, had asked AAI for time to work out the modalities for implementing the 'cash and carry' mode and requested the authority to defer the implementation.

The airline's unpaid dues include interest and exceed its bank guarantee, which is with the airport authority. Two months of flight disruption has hit the ailrines hard. While is negotiating with various vendors to defer payments, its current liabilities are more than its current assets, the airline's auditor observed.

“The Airports Authority of India deferred its decision to put SpiceJet on cash and carry. We continue to have normal operations at all AAI-run airports as before without any impediments," a SpiceJet spokesperson said.

According to a media report, SpiceJet had disputed AAI claims and accused the authority for levying charges wrongly.

First Published: Thu, July 30 2020. 22:46 IST
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