Industry

AAI asks SpiceJet to furnish bank guarantee on dues

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Tightening the screw on cash-strapped budget carrier SpiceJet, the Airports Authority of India (AAI) is considering putting the airline on the cash-and-carry mode soon if it does not furnish a bank guarantee against its dues to the airport operator. The dues stand at around Rs.200 crore.

“The AAI is planning to put SpiceJet on cash-and-carry mode from Wednesday if it does not by that time furnish to the airport operator a bank guarantee against its dues,” sources said. Also, aviation regulator DGCA is likely to issue a show-cause notice to the airline for defying its directives regarding advance bookings, sources said here.

“The DGCA is likely to issue a show-cause notice to SpiceJet as the airline continues accepting advanced bookings of beyond one month against the directives on the issue,” official sources said here.

The DGCA has asked the airline to stop taking bookings by Tuesday of more than one month in advance, they said, adding, “If it does not, it will be served a show-cause notice.”

The sources said that although the regulator’s action would not lead to the cancellation of the airline’s licence by itself, they added that it could force “a series of actions, which could lead to the cancellation of licence.”

An airline spokesperson, however, defended the advance bookings, saying it had already informed the regulator that it wanted to discuss the issue this week.

“We have told the DGCA in our response that we would like to discuss the matter and plan to do so tomorrow post a board meeting,” the spokesperson said.

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Printable version | Jan 24, 2020 2:21:44 PM | https://www.thehindu.com/business/Industry/airports-authority-of-india-asks-spicejet-to-furnish-bank-guarantee-on-dues/article6673551.ece

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