Wednesday, November 28, 2018

SpiceJet gives AAI additional Rs 20 crore bank guarantee after getting notice for mounting dues

New Delhi: SpiceJet on Wednesday gave an additional bank guarantee of Rs 20 crore to the Airports Authority of India (AAI) after getting a notice from the state-run airport operator with the low cost carrier's dues exceeding its bank guarantee. AAI had issued the notice when SpiceJet dues rose to Rs 117 crore while its bank guarantee was for Rs 104 crore.
"We have deposited an additional bank guarantee of Rs 20 crore to AAI (on Wednesday). This is over and above the Rs 104 crore bank guarantee already with AAI," said a SpiceJet official. An airline spokesman said: "Payments to AAI and other vendors are being made as per schedule by SpiceJet. We remain firmly committed to all our obligations."
Due to high aviation turbine fuel prices and the fall of the rupee, all Indian carriers are under severe financial stress with two big players - Air India and Jet Airways - struggling to stay afloat.
SpiceJet had reported a loss of Rs 389.4 crore in the July-September, 2018, period versus a profit of Rs 105.3 crore in same quarter last fiscal. This was the airline's second straight quarterly loss after 13 profitable quarters in a row.
28/11/18 Times of India