AAI allows SpiceJet to fly despite pending dues, loss of ₹934.8 crores

SpiceJet, which is one of the low-cost airlines in the country, has now been allowed to operate normally by the Airports Authority of India (AAI) until further notice.

SpiceJet, which is one of the low-cost airlines in the country, has now been allowed to operate normally by the Airports Authority of India (AAI) until further notice. The decision comes after SpiceJet wrote to AAI seeking more time to work out the modalities to pay pending dues.

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The airlines had announced a net loss of ₹934.8 crore for the year 2019-2020.

SpiceJet spokesperson said, “The AAI has 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.”

The development comes after AAI issued a letter to all regional executive directors and all its other necessary department heads, along with SpiceJet’s chairman and managing director (CMD) informing that the low-cost carrier will have to pay before operating each of their flight in all the airports managed by AAI across the country.

The letter had stated that the airline will have to pay in cash, from midnight on Thursday, to operate its flights as it had failed to clear dues towards parking and landing charges at various airports despite being reminded repeatedly.

The AAI letter dated July 29, a copy of which is with HT, states that it had sent various emails to the airline as a reminder to clear its dues, but since the airline had failed to pay its pending charges, it was implementing cash and carry policy for the airline.

After a request from SpiceJet, AAI issued a statement which read, “The decision to put the all India operation of M/s SpiceJet on cash and carry with effect from 0001 hrs of 30th July 2020 is deferred till further orders.”

On Wednesday, SpiceJet had announced a loss of ₹807.1 crore in the March quarter of the 2019-20 financial year as against a net profit of ₹56.3 crore a year ago. For the whole of 2019-20, net loss stood at ₹934.8 crore against a net loss of ₹316.1 crore in 2018-19.

In the first week of July, Air India too was announced to be put on cash and carry mode by the AAI in Ahmedabad, Bhubaneswar, Chennai and Kolkata airports from July 7. The decision was taken owing to their long-pending dues. However, this decision too was deferred after Air India paid a small amount of the total dues and even wrote to the AAI to allow them more time.