Millennium Post

Furnish bank guarantee on your Rs 200-crore dues: AAI to SpiceJet

Furnish bank guarantee on your Rs 200-crore dues: AAI to SpiceJet
Tightening the screw on cash- strapped budget carrier SpiceJet, Airports Authority of India (AAI) is considering putting the airline on the cash-and-carry mode soon if it does not furnish a bank guarantee against its dues to the airport operator, which stand at around Rs 200 crore.

"AAI is planning to put SpiceJet on cash-and-carry mode from Wednesday if it does not by that time furnish to the airport operator a bank guarantee against its dues," sources said.

Also, aviation regulator DGCA is likely to issue a show- cause notice to the airline for defying its directives regarding advance bookings, sources said here.

"DGCA is likely to issue a show-cause notice to SpiceJet as the airline continues accepting advanced bookings of beyond one month against the directives on the issue," official sources said here. DGCA has asked the airline to stop taking bookings by Tuesday of more than one month in advance, they said, adding, 'If it does not, it will be served a show-cause notice."

The sources said that although the regulator's action will not lead to the cancellation of the airline's licence by itself, they added that it could force "a series of actions, which could lead to the cancellation of licence".

An airline spokesperson, however, defended the advance bookings, saying it has already informed the regulator that it wants to discuss the issue this week.

"We have told DGCA in our response that we would like to discuss the matter and plan to do so tomorrow post a board meeting," the spokesperson said.

SpiceJet cancels 1,800 flights in domestic sector

Cash-strapped SpiceJet has cancelled over 1,800 flights across the country for the current month, in signs of mounting troubles for the budget airline.The air carrier,  which is part of Kalanithi Maran-led Sun Group, has cancelled a total of 1,861 flights, a few to Kathmandu in Nepal and all others connecting domestic cities, till 31 December, SpiceJet said. 
PTI

PTI

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