SpiceJet may be placed on cash-and-carry mode over unpaid dues

Forum Gandhi Mumbai | Updated on July 31, 2020

Airports Authority of India (AAI) has asked cash-strapped SpiceJet to clear dues or be ready to be put on 'Çash-and-carry' mode. AAI had issued an order to put the airline under the cash and carry mode but later withdrew it after the airline assured payment.  

On Wednesday SpiceJet reported its highest ever quarterly loss of Rs 807.07 crore in the March quarter, compared to a net profit of Rs 56.29 crore in the year-ago period. Following this, it received a notice from AAI that SpiceJet is being put on cash-and-carry with effect from July 30.

An order, dated, July 29 stated that after multiple emails, it had been decided that "it is once again informed that the Competent Authority has approved to put the operation of Mis SpiceJet Ltd, on Cash & Carry basis out of all AAI Airports w.e.f 0001 hrs. of July 30 2020." The letter was reviewed by BusinessLine.

However, this was later withdrawn. An AAI source said that "We did write, but SpiceJet has responded that they will revert with a payment plan for their dues. No more credit for them. They have agreed to pay the current dues daily and will come up with a payment plan for past dues."

A source at SpiceJet said that they requested AAI for more time to pay.

 "SpiceJet has requested AAI time to work out the modalities for implementing the Cash and Carry and requested to defer the Cash and Carry timing and date till the finalization of the same. Therefore, the decision to put the All India Operation of SpiceJet on Cash and Carry w.e.f 0001 hrs of July 30, 2020, is deferred till further orders," AAI said in a subsequent order.

"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.




Published on July 31, 2020

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