New Delhi: Even as the budget airline SpiceJet was struggling to maintain its flight schedule, financial cracks are beginning to appear.
In a clear sign of its slipping health, and going the Kingfisher Airline way, the Airports Authority of India (AAI) has put SpiceJet's operations on cash and carry mode from Tuesday. An airline is put on cash and carry mode when it is unable to clear its dues in the time specified by its vendor or when its dues mount beyond acceptable limit.
A letter sent out by AAI's executive director (finance) last Monday directs airport directors of Delhi, Mumbai, Kolkata, Chennai and Guwahati to not accept cheques from the beleaguered airline, which has been in the swirl of financial crisis for the last one year.
"It has been decided by the competent authority to put operation of SpiceJet Ltd on cash and carry basis, (with effect from) from 4th December, 2014 (from mid-night), that is 5th December, 2014 (0.00 hours), till further order as per AAI approved credit policy," says the letter, a copy of which is with dna.
04/12/14 Praveena Sharma/Daily News & Analysis
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In a clear sign of its slipping health, and going the Kingfisher Airline way, the Airports Authority of India (AAI) has put SpiceJet's operations on cash and carry mode from Tuesday. An airline is put on cash and carry mode when it is unable to clear its dues in the time specified by its vendor or when its dues mount beyond acceptable limit.
A letter sent out by AAI's executive director (finance) last Monday directs airport directors of Delhi, Mumbai, Kolkata, Chennai and Guwahati to not accept cheques from the beleaguered airline, which has been in the swirl of financial crisis for the last one year.
"It has been decided by the competent authority to put operation of SpiceJet Ltd on cash and carry basis, (with effect from) from 4th December, 2014 (from mid-night), that is 5th December, 2014 (0.00 hours), till further order as per AAI approved credit policy," says the letter, a copy of which is with dna.
04/12/14 Praveena Sharma/Daily News & Analysis
