SpiceJet has said that it is out of the ‘cash and carry’ arrangement with Airport Authorities of India. It has now entered into a full and final settlement with AAI, and has cleared all outstanding dues, said the airline.
From hereon, the airline will no longer remain on ‘cash and carry’ at AAI-run airports across the country, said SpiceJet. ‘Cash and carry’ mechanism refers to an arrangement where the customer pays for each visit or service. SpiceJet said that it will revert to an advance payment mechanism for daily flight operations.
The airline added that its ability to clear its dues reflect its improved cash flow.
AAI will also release the airline’s Rs 50 crore bank guarantee as it has cleared all its principal dues. This will result in additional liquidity for the airline.
SpiceJet with 51 domestic destinations, has one of the biggest networks among airlines in India. It said that they have the record for having flown with a passenger load factor (PLF) of more than 90 per cent for a record 58 consecutive months.
Last week, the Directorate General of Civil Aviation (DGCA) directed SpiceJet to restrict flight departures to 50 per cent for the next eight weeks following a number of technical snags.
"In view of findings of various spot checks, inspections and the reply to the show cause notice submitted by Spicejet, for continued sustenance of safe and reliable air transport service, the number of departures of Spicejet are hereby restricted to 50% of the number of departures approved under Summer Schedule 2022 for a period of 8 weeks from the date of issue of this order, in accordance with powers conferred under rule 19A of the Aircraft Rules, 1937," the DGCA order read. During these 8 weeks, the airline will be subject to “Enhanced Surveillance”, DGCA noted.
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