AAI asks SpiceJet to operate on cash and carry basis, but defers decision later

Updated : July 30, 2020 11:39 PM IST

This is not the first time SpiceJet has faced such a situation, but the notice underlines the abysmal condition of the domestic carrier amid the COVID-19 pandemic.

The Airports Authority of India (AAI) had placed SpiceJet's operations under "cash and carry" arrangement at all airports, via a notice issued on July 29. However, the decision has now been deferred. Under the cash and carry mode, an airline can use airport facilities only after making advance payments.

"Airports Authority of India deferred its decision to put SpiceJet on cash and carry. SpiceJet continues to have normal operations at all AAI-run airports as before without any impediments," the airline's spokesperson told CNBC-TV18.

An airline has to make payments for services such as landing, parking and using navigation services to the Airports Authority of India. As per the standard procedure of AAI, an official said that airlines can maintain dues equivalent to half of their security deposit.

This is not the first time SpiceJet has faced such a situation, but the notice underlines the abysmal condition of the domestic carrier amid the COVID-19 pandemic.

"....it is once again informed that the Competent Authority has approved to put the operation of M/S SpiceJet Ltd on cash and carry basis out of all AAI airports w.e.f 00:01 hours of 30th July 2020. The above may be brought to the information of all concerned officials/directorates of AAI for taking further necessary action and implementation of the same," the July 29 notice sent to the CMD of SpiceJet and marked to all regional airport directors read.

AAI asks SpiceJet to operate on cash and carry basis, but defers decision later

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