New Delhi: Even as the top management of loss-making carrier SpiceJet spent all of Monday in a meeting trying to find a way to stay afloat, the airline could be in more trouble. Given how the carrier has been late on payments to suppliers, Airports Authority of India may put the Kalanithi Maran-led carrier on cash-and-carry mode later this week unless it furnishes bank guarantees of around R200 crore, sources said. That means SpiceJet will not receive any credit facilities and must clear all airport charges every time a flight takes off.
Last week, the Directorate General of Civil Aviation (DGCA) had asked the airline to stop taking bookings beyond a month due to its precarious financial position. The aviation regulator could also pull up the airline for continuing to issue tickets beyond 30 days, a top civil aviation ministry official said.
Official sources have said that SpiceJet owes suppliers, including AAI, R1,600 crore, though the airline in a statement issued on Sunday claimed that the figure was “significantly less”. Additionally, it is behind on salary payments largely for top employees who account for 15% of the total workforce. DGCA is understood to have withdrawn 186 slots from the airline while the airline has cancelled 70 flights per day from a peak of about 345.
09/12/14 Financial Express
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Last week, the Directorate General of Civil Aviation (DGCA) had asked the airline to stop taking bookings beyond a month due to its precarious financial position. The aviation regulator could also pull up the airline for continuing to issue tickets beyond 30 days, a top civil aviation ministry official said.
Official sources have said that SpiceJet owes suppliers, including AAI, R1,600 crore, though the airline in a statement issued on Sunday claimed that the figure was “significantly less”. Additionally, it is behind on salary payments largely for top employees who account for 15% of the total workforce. DGCA is understood to have withdrawn 186 slots from the airline while the airline has cancelled 70 flights per day from a peak of about 345.
09/12/14 Financial Express
