New Delhi: State-run Airports Authority of India (AAI) has decided to put SpiceJet on cash-and-carry after the low cost carrier's (LCC) dues reportedly crossed its bank guarantee and were not cleared despite reminders from AAI. The authority has also warned Jet Group to keep its dues within bank guarantee limits or else it too may be denied credit.
"SpiceJet will be on cash-and-carry from Friday (August 30)," AAI chairman V P Agrawal said. Being denied credit by AAI hurts airlines immensely as the PSU provides air traffic services across Indian airports, including the private metro ones. Five private airlines, including those which have stopped flying like Kingfisher and Paramount, owe Rs 357 crore to AAI.
In a statement, SpiceJet denied running up dues over bank guarantee. "SpiceJet has been making payments to AAI as per the agreed schedules... We always have good support from AAI in our day to day operations... Our dues are covered within bank guarantee limits," SpiceJet CFO Sam Issac said.
29/08/13 Saurabh Sinha/Times of India
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"SpiceJet will be on cash-and-carry from Friday (August 30)," AAI chairman V P Agrawal said. Being denied credit by AAI hurts airlines immensely as the PSU provides air traffic services across Indian airports, including the private metro ones. Five private airlines, including those which have stopped flying like Kingfisher and Paramount, owe Rs 357 crore to AAI.
In a statement, SpiceJet denied running up dues over bank guarantee. "SpiceJet has been making payments to AAI as per the agreed schedules... We always have good support from AAI in our day to day operations... Our dues are covered within bank guarantee limits," SpiceJet CFO Sam Issac said.
29/08/13 Saurabh Sinha/Times of India
