The Airports Authority of India (AAI) has asked budget carrier GoAir to operate on the cash and carry basis at all airports with effect from August 11, sources told CNBC-TV18. Once an airline is placed under the cash and carry mode, it needs to make payments upfront for using airport services.
One an airline is placed under this system, it needs to make payments for services including landing, parking and using navigation services to AAI in advance. As per the standard procedure, an official said that airlines can maintain dues equivalent to half their security deposit.
When contacted, a spokesperson for the airline told CNBC-TV18, "GoAir is engaged in constructive discussions with AAI and would like to assure our customers that there is no impact on GoAir’s operations. GoAir flights will continue to be operated as normal at all airports."
A notice, dated August 10 was sent to all station heads of GoAir so that necessary arrangements can be made to make payments on a day-to-day basis.
GoAir was the first airline to have sought government support to ensure that it survives the impact of the COVID-19 pandemic. The domestic aviation sector was shut for two months for scheduled passenger flights and airlines were allowed to resume operations (partly) from May 25.
Currently, airlines have been allowed to operate under restricted fare brackets using only 45 percent of seating capacity. However, muted demand is resulting in lower capacity utilisation. In July, low-cost airline SpiceJet was also placed under a similar arrangement, but the decision was deferred.
First Published: IST