SpiceJet given more time to clear dues

SpiceJet, which made payments of around Rs 5 crore (Rs 50 million) to AAI on Wednesday, sought time till Monday to clear the dues.

The Airports Authority of India on Wednesday granted an extension to SpiceJet till Monday to clear dues of around Rs 200 crore (Rs 2 billion).

SpiceJet, which made payments of around Rs 5 crore (Rs 50 million) to AAI on Wednesday, sought time till Monday to clear the dues.

A senior government official informed AAI had agreed not to withdraw the credit facility of SpiceJet till Monday.

On Tuesday, SpiceJet Chief Operating Officer Sanjiv Kapoor and Sun Group Chief Financial Officer S L Narayanan met AAI officials.

AAI had asked the airline to clear all dues or it would put them on cash and carry from Wednesday midnight.

SpiceJet has slashed capacity by returning 15 Boeing 737 planes in the past few months, bringing its fleet size to 37 planes in December (including 15 Bombardier Q400s).

Its total number of flights has reduced to 232, from 345 during the same period last year.

The Directorate General of Civil Aviation, too, has withdrawn 186 flight slots of SpiceJet and barred the airline from booking flights beyond a month.

The aviation regulator has asked the airline to refund passengers whose flights have been cancelled by December 15.

The airline has refunded 55,000 passengers according to figures with the regulator.

SpiceJet has also for the first time delayed salaries to employees in December. The DGCA on Friday had warned it to pay salaries by the 7th of every month.

The regulator has also asked SpiceJet to submit a financial plan by December 15, on how it plans to clear its dues of Rs 1,600 crore (Rs 16 billion).

In a statement last week, SpiceJet said its dues were less.