Monday, 8 December 2014

AAI May Put Spicejet on “Cash-And-Carry” Mode

Troubled private airliner SpiceJet is facing new problems as Airports Authority of India (AAI) is considering putting it on “cash-and-carry” mode soon if the airline is unable to furnish a bank guarantee of about Rs 200 crore against its dues by December 10.

With aviation regulator, directorate general of civil aviation (DGCA), also planning to issue a show cause notice to SpiceJet for defying its directive regarding advance bookings beyond a month, worse days could be ahead for the carrier. “The AAI would put SpiceJet on cash-and-carry mode from Wednesday if it does not furnish a bank guarantee to the airport operator against its dues by that time,” a senior official said.

After reviewing the financial and operational parameters of the airline on Friday, director-general of civil aviation Prabhat Kumar had issued a series of instructions to SpiceJet, also directing them to file a “convincing schedule” by December 15.

DGCA had also instructed the airline not to accept bookings for cancelled flights, to refund all affected passengers within a month, and not to take advance bookings beyond a month.

While the DGCA withdrew 186 flight slots of SpiceJet at various airports across the country on Friday, the airline had said on Saturday that the advance booking restriction would be counter-productive, and it would discuss the pros and cons of this with the DGCA. On Monday, however, the airline continued to take advance bookings, even for dates in 2015.


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