SpiceJet will no longer operate on 'cash and carry' basis, clears outstanding dues to AAI

The aviation company SpiceJet said on Tuesday that it has cleared all the outstanding principal dues to the Airports Authority Of India (AAI). As a result, AAI will release 50 crore bank guarantee which will provide further liquidity to the company.

The AAI had earlier put SpiceJet operations on a "cash and carry" basis possibly due to the carrier's non payment of airport dues. SpiceJet will no longer remain on ‘cash and carry’ basis at AAI run airports. The company said that it will revert to advance payment mechanism for daily flight operations.

Earlier, in light of multiple technical malfunctioning incidents reported between April 1 and July 5, the Directorate General of Civil Aviation (DGCA) had on July 27 acted on its show-cause notice to SpiceJet and cut the airline's operations to 50 percent of its current departures that were approved under the summer schedule.