Airlines’ Outstanding Payments to AAI Doubled Between January 2020 to October 2021

IndiGo, AirAsia India, SpiceJet, Vistara, GoAir and Air India owed the AAI a total debt of Rs 2,306.59 crore as of January 1, 2020, according to PTI. According to the papers, the total amount owed by these six leading domestic carriers climbed by 14.29% to Rs 2,636.34 crore by October 31, 2021.

Highlights:

  • Air India remains the domestic airline with the highest debt to the AAI.
  • The total amount owed by six leading domestic airlines climbed by 14.29% to Rs 2,636.34 crore by October 31, 2021.
  • Vistara and IndiGo have cleared their outstanding debts.

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According to an internal document of the Airports Authority of India (AAI), the dues for four major domestic airlines — AirAsia India, IndiGo, SpiceJet, and Go First — have doubled between January 2020 and October 2021.

On the other hand, Air India remains the domestic airline with the highest debt to the AAI. According to the records, Air India owes the AAI Rs 2,362.36 crore as of October 31, 2021, up from Rs 2,183.71 crore on January 1, 2020.

To use the amenities at any of the AAI’s more than 100 airports, an airline must pay some charges, including air navigation, landing, and parking. The Civil Aviation Ministry oversees both Air India and the AAI.

IndiGo, AirAsia India, SpiceJet, Vistara, GoAir and Air India owed the AAI a total debt of Rs 2,306.59 crore as of January 1, 2020, according to PTI. According to the papers, the total amount owed by these six leading domestic carriers climbed by 14.29% to Rs 2,636.34 crore by October 31, 2021.

Vistara and IndiGo cleared their dues to AAI

Vistara and IndiGo have stated that all of their outstanding debts have been paid, while SpiceJet has said that its outstanding debts are well within credit limitations.

IndiGo, India’s largest budget carrier, owe Rs 80.69 crores in October 2021, compared to Rs 33.21 crore in January 2021, according to PTI’s report. According to AAI documents, SpiceJet’s AAI debt grew from Rs 69.93 crore in January 2020 to Rs 146.75 crore in October 2021.

Considering that SpiceJet has issued a bank guarantee worth more than Rs 150 crore, its outstanding balances are well within credit limits, PTI cited an unnamed spokesperson of the airline. “On the contrary, SpiceJet has massive claims against AAI totalling over Rs 170 crore for improper levy of landing charges for Q400 aircraft, damages for accident and loss of aircraft at Jabalpur airport, and damages for an accident at Surat airport,” according to the spokesperson.

According to a SpiceJet spokesperson, the airline’s total dues to AAI as of October 31, 2021, were Rs 122.69 crore.

According to AAI data, Go First, formerly known as GoAir, had its dues to the AAI grow from Rs 15.62 crore in January 2020 to Rs 39.06 crore in October 2021.

AirAsia India’s debt to the AAI climbed from Rs 1.47 crore in January 2020 to Rs 3.58 million in October 2021.

Vistara’s debt to the AAI climbed from Rs 2.65 crore in January 2020 to Rs 3.9 crore in October 2021.

India’s aviation industry was hit badly during the pandemic, which led to the accumulation of several payments and a severe reduction in revenue.

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Ria is a lead news writer at Aviation Scoop. She writes from dawn to dusk, reads in the evenings, and draws at some ungodly hours. She loathes human interaction and finds solace in the sweet, musky smell of old books, and rain.

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