SpiceJet on Tuesday mentioned it has entered into an settlement with the Airports Authority of India (AAI) and cleared all excellent principal dues of the airport operator.
“With this, SpiceJet will no longer remain on ‘cash and carry’ at AAI-run airports across the country and will revert to advance payment mechanism for daily flight operations,” the airline’s assertion famous.
The Centre-run AAI had in 2020 put SpiceJet on a ‘cash and carry’ foundation because the provider was unable to clear its earlier dues.
In the ‘cash and carry’ mannequin, the airline has to make every day funds to the AAI for varied costs — navigation, touchdown, parking, and others — to function flights.
SpiceJet mentioned on Tuesday: “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.” SpiceJet has been making losses for the final 4 years. It incurred internet losses of Rs 316 crore, Rs 934 crore and Rs 998 crore in 2018-19, 2019-20 and 2020-21, respectively.
In the April-December interval of 2021, the airline posted a internet lack of Rs 1,248 crore. The airline is but to declare outcomes for January-March interval of 2022.
Aviation regulator DGCA had on July 27 ordered SpiceJet to function no more than 50 per cent of its flights, which had been authorised for summer time schedule, for a interval of eight weeks.
On July 6, the Directorate General of Civil Aviation (DGCA) had issued a show-cause discover to SpiceJet following at the least eight incidents of technical malfunction in its plane since June 19.