SpiceJet clears all principal dues with Airports Authority of India
By Team Newsable | First Published Aug 2, 2022, 12:18 PM ISTThe latest announcement comes just days after SpiceJet was ordered by aviation regulator Directorate General of Civil Aviation (DGCA) to operate only 50 per cent of approved flights for 8 weeks due to multiple snags reported by the airline.
SpiceJet on Tuesday announced that it has reached a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues. This means the airline will no longer remain on 'cash and carry' at AAI-managed airports.
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For daily flight operations, SpiceJet will revert to an advanced payment mechanism. In a statement, the airline stated that its ability to clear the pending dues reflects its improved cash flow in recent times. Furthermore, AAI will release SpiceJet's Rs 50 crore bank guarantee following the airline clearing all of its principal debts, providing the airline with additional liquidity.
SpiceJet, based in Gurugram, is the country's largest regional player, operating a fleet of Boeing 737s, Q400s, and freighters under UDAN, or the Regional Connectivity Scheme. SpiceJet has added several UDAN destinations such as Pakyong, Jharsuguda, Kandla, Darbhanga, Kanpur, and Ajmer (Kishangarh) to the country's aviation map, amongst others.
For a record seven years, the airline has flown with the highest passenger load factor in Indian skies. SpiceJet has had the highest occupancy among all Indian domestic airlines since April 2015, a feat unrivalled in global aviation. The airline also has the enviable distinction of flying with a Passenger Load Factor (PLF) of more than 90 per cent for a record 58 months in a row.
Domestically, the airline operates to 51 domestic destinations and spans the length and breadth of the country.
Meanwhile, the latest announcement comes just days after SpiceJet was ordered by aviation regulator Directorate General of Civil Aviation (DGCA) to operate only 50 per cent of approved flights for 8 weeks due to multiple snags reported by the airline. The directive came after SpiceJet failed to respond to a show cause notice issued earlier this month.
Also read: Following multiple snags, DCGA orders SpiceJet to operate 50% flights for 8 weeks
Also read: After SpiceJet, now an IndiGo flight lands in Karachi due to a glitch
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