SpiceJet clears all outstanding principal dues of AAI, now out of 'Cash And Carry' arrangement
SpiceJet said its ability to clear the pending dues reflects the airline’s improved cash flow
SpiceJet on Tuesday said it has cleared all outstanding principal dues of the airport operator and has entered into a full and final settlement with the Airports Authority of India (AAI).
With this, SpiceJet said it will no longer remain on 'cash and carry' at AAI-run airports across the country and revert to advance payment mechanism for daily flight operations.
"SpiceJet has entered into final settlement with AAI and has cleared all outstanding principal dues of airport operator. It will no longer remain on 'cash & carry' at AAI run airports across the country & will revert to advance payment mechanism for daily flight operations," the airline said in a statement.
SpiceJet said its ability to clear the pending dues reflects the airline's improved cash flow in recent times.
"In another big boost for the airline, AAI will release SpiceJet's Rs 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline," the airline added.
The Centre-run AAI had in 2020 put SpiceJet on a 'cash and carry' basis as the carrier was unable to clear its previous dues.
In the 'cash and carry' model, the airline has to make daily payments to the AAI for various charges — navigation, landing, parking, and others — to operate flights.
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