SpiceJet has received permission from the Airports Authority of India (AAI) to resume operations in the country’s airports. This comes after the AAI deferred the decision to allow operations only after SpiceJet clears its existing dues to the AAI. The previous order published by the AAI mentioned a deadline of midnight on Thursday, July 30, asking the airline to pay in cash.
This deferment comes as SpiceJet requested the AAI to offer an extension in order to clear the dues. The AAI, for its part, has agreed to defer the payment until a later date. The revised statement by AAI read - “The decision to put the all India operation of M/s SpiceJet on cash and carry with effect from 0001 hrs of 30th July 2020 is deferred till further orders.”
A SpiceJet spokesperson confirmed the decision saying, “The AAI has deferred its decision to put SpiceJet on cash and carry. We continue to have normal operations at all AAI-run airports as before without any impediments.”
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It is worth mentioning that the AAI had also asked national airline Air India to clear its pending dues before resuming operations. Starting July 7, the AAI decided to put Air India under its cash and carry policy at Ahmedabad, Bhubaneswar, Chennai and Kolkata airports. However, the AAI decided to defer the order on the airline after Air India paid some of its pending dues and requested an extension.
It goes without saying that domestic airlines have been hit the hardest with the state lockdowns and restrictions imposed in March, April, and May as a consequence of the coronavirus pandemic. SpiceJet has previously reported a net loss of Rs 934.8 crore for the fiscal year 2019-20. By contrast, the airline reported losses of Rs 316.1 crore in the 2018-19 period.
Domestic flight operations in India resumed in some capacity in late May, although the Central and State Governments were conducting ‘Vande Bharat’ flight missions which was put in place to evacuate Indians who are stranded overseas.
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