Friday, July 31, 2020

SpiceJet facing cash and carry hurdle

Mumbai: Due to non-payment of dues, low cost carrier SpiceJet was to be put on "cash and carry" by the Airports Authority of India (AAI) from Thursday. However, the decision has been deferred after the airline requested for time to work out the modalities for implementing the cash and carry regime.

AAI has got the requisite permission from its competent authority to put SpiceJet on cash and carry mode from 0.01 am on Thursday, said a letter sent by AAI general manager (finance) to SpiceJet chairman and AAI regional executive directors of Mumbai, Delhi, Kolkata, Chennai, Guwahati airports on Wednesday.

SpiceJet in a statement said: "The AAI 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."

In a follow-up letter to various airport directors, AAI GM (finance) said that the airline has been given time to work out the modalities and the decision to put on cash and carry from July 30 has been "deferred till further notice."

Generally, airlines pays for facilities provided by AAI like route navigation, landing, parking etc on a monthly basis. Under cash and carry mode though an airline has to pay daily for the facilities used at an airport.
31/07/20 Manju V/Times of India
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