SpiceJet on Tuesday said it has cleared all outstanding dues and will no longer operate on the “cash and carry” basis at the Airports Authority of India (AAI) run airports across the country by reverting to advanced payments for flight operations.
“SpiceJet’s ability to clear the pending dues reflects the airline’s improved cash flow in recent times. In another big boost for the airline, AAI will release SpiceJet’s INR 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline,” an airline spokesperson said.
The airline said SpiceJet has flown with the highest passenger load factor for a record seven years and has recorded the highest occupancy among Indian domestic airlines since April 2015. “The airline also holds the envious distinction of having flown with a Passenger Load Factor (PLF) of more than 90% for a record 58 consecutive months,” the spokesperson said.
A financial assessment of the airline in September 2021 found that SpiceJet was operating on “cash and carry” and approved vendors were not being paid on regular basis leading to the shortage of spares and frequent invoking of minimum equipment list (MELs). MEL is a list of certified equipment before flying. A certified aircraft maintenance engineer is allowed to release an aircraft for flying if certain listed equipment is not available.
In a July 6 notice, the Directorate General of Civil Aviation (DGCA) pointed to the poor internal safety oversight and inadequate maintenance actions at the airline. The DGCA on July 27 said it is restricting half of SpiceJet’s summer schedule for eight weeks on the basis of the findings of its “spot checks, inspections”, and the airline’s response to a notice from it.
{{/usCountry}}In a July 6 notice, the Directorate General of Civil Aviation (DGCA) pointed to the poor internal safety oversight and inadequate maintenance actions at the airline. The DGCA on July 27 said it is restricting half of SpiceJet’s summer schedule for eight weeks on the basis of the findings of its “spot checks, inspections”, and the airline’s response to a notice from it.
{{/usCountry}}The move came a week after DGCA issued a warning notice to SpiceJet, saying the budget carrier failed to establish its services were safe, efficient, and reliable after at least nine SpiceJet flights between May 1 and July 6 witnessed “incidents” ranging from cracked windscreens to malfunctioning instruments.