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AAI puts GoAir on cash-and-carry mode over Rs 50 crore unpaid dues

After the action from AAI, GoAir will now have to pay the public sector firm in advance for services including landing, parking and navigation services

twitter-logoBusinessToday.In | August 11, 2020 | Updated 00:30 IST
AAI puts GoAir on cash-and-carry mode over Rs 50 crore unpaid dues

Airports Authority of India (AAI) has put n-frills airline GoAir on cash and carry mode after the latter could not clear unpaid dues worth Rs 50 crore. The airline will now have to pay upfront to avail of services at airports operated by the AAI. The decision comes into effect on August 11.

"The competent Authority has approved to put the operation of M/s Go Air on cash & carry basis out of all AAI Airports w.e.f. 0001 hrs. of 11th August 2020," the Livemint quoted an internal AAI circular. "The same may also be informed to the concerned officials of M/s GoAir at respective stations/Airports/Regions to make necessary arrangement to pay the required amount at the respective Stations for day-to-day operation."

GoAir will now have to pay AAI beforehand for services including landing, parking and navigation services. Usually, airlines are allowed to maintain dues amounting to half their security deposit.

ALSO READ: GoAir launches scheme for flyers to book 'private zone'

Meanwhile, GoAir has assured that there will no impact on its operations at airports and it is communicating with AAI regarding the action, the Livemint report said.

GoAir has operations across 27 domestic and 9 international destinations. Although the airline operates 330 daily flights to these locations in normal, it has seen its capacity curtailed due to coronavirus lockdowns in the country and abroad.

The Indian aviation industry reopened on May 25 after being on hold of the two months, since the beginning of the first phase of nationwide coronavirus lockdown. Although domestic operations have been allowed at limited capacity, international flights remain banned. Airlines are unable to cover their high fixed costs with the deficient revenues in present times.

ALSO READ: India's air passenger traffic dips 84% in June; GoAir records sharpest fall

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