SpiceJet Gets Approval to Fly Normally from Airports Authority of India

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SpiceJet is an Indian low-cost airline and is the second-largest in the country by the number of passengers carried. The airline reported a net loss of Rs. 934.8 crore during the year 2019-2020. Due to this, the airline has failed to pay its pending dues. Looking at that, The Airports Authority of India (AAI) has allowed the airline to function normally without paying for each flight before they fly. SpiceJet had earlier written to AAI asking for more time to clear the dues.

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AAI Asks SpiceJet to Pay in Cash in Airports

In a letter to regional executive directors, department heads and chairman & managing director (CMD) of SpiceJet, AAI wrote that the airline will pay in cash at the airports. The payment has to be made before each flight takes off from any of the AAI managed airports. The letter said that SpiceJet will have to start paying by Thursday midnight. The airline had earlier failed to pay parking and landing charges.

But the letter from AAI did not mention the amount pending. The airline had not paid parking and landing charges at various airports even after various emails were sent to SpiceJet regarding the payment of charges. In a statement, AAI said, “The decision to put the All India Operation of M/s SpiceJet on Cash and Carry with effect from 0001 hrs of 30th July 2020 is deferred till further orders.”

“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,” said a spokesperson from SpiceJet. In the March quarter of the financial year 2019-20, SpiceJet incurred a loss of Rs. 807.1 crore, while a year ago they had a net profit of Rs. 56.3 crore. The net loss of SpiceJet in 2018-19 was Rs. 316.1 crore, while in 2019-20 the net loss was Rs. 934.8 crore.

Earlier in July AAI had announced that they are allowing Air India to operate its flights by putting them under cash and carry policy. The decision was taken on July 7 by the AAI in Ahmedabad, Bhubaneswar, Chennai and Kolkata. It is the second airline to be put under the same policy.

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