SpiceJet gets 10 days more to pay up Rs 200 cr

In a breather for cash-strapped SpiceJet, the aviation ministry on Wednesday extended the deadline for the airline to make payments to the Airports Authority of Indiaby another ten days to January 10.

In a breather for cash-strapped SpiceJet, the aviation ministry on Wednesday extended the deadline for the airline to make payments to the Airports Authority of India (AAI) by another ten days to January 10.

SpiceJet had time till December 31 to deposit Rs 200 crore with AAI or provide bank guarantees to avoid being put on cash and carry (where it has to pay for daily operations).

“We have extended the deadline by another 10 days. Putting it on cash and carry could have impacted its operations resulting in unnecessary problems for passengers during the peak season,” said an official.

On December 16, the ministry had given the Kalanithi Maran-controlled airline 15 days time to clear its dues to AAI. Sources said the airline has deposited a bank guarantee of about Rs 82 crore so far and assured the government that it would make payments to AAI by next week.

SpiceJet has reduced its daily flights to 230 from the 345 it was operating in July. “The schedule will remain at the reduced level until the recapitalisation is completed and fleet increased. Notwithstanding, SpiceJet is scheduled to operate over 7,000 flights in January,” the airline said in a statement.