AAI considers pulling plug on credit to Jet, SpiceJet The Airports Authority of India (AAI) might stop all credit facilities to Jet Airways and SpiceJet, putting both in ‘cash-and-carry’ mode if they fail to clear unpaid dues, of a combined Rs 250 crore. A meeting between the managements of Jet and SpiceJet with senior AAI officials is scheduled for Monday. Both airlines have struggled to meet operational costs, with a sharp increase in those on fuel and in dollar-denominated expenses. Sources in AAI say SpiceJet has been inconsistent in clearing airport dues over the past six months, while Jet has not been making timely payments over the past year. SpiceJet, however, ruled out the possibility of being put in ‘cash-and-carry’ mode as its dues were covered within the bank guarantee. “It is business as usual. Our outstanding is within the credit policy of AAI. We regularly meet AAI as part of our normal business,” said Sam Isaac, chief financial officer, SpiceJet. Isaac said the airline has never been put on ‘cash-and-carry’ by AAI. Jet Airways did not comment on the matter.
Posted on: Sun, 24 Nov 2013 05:32:39 +0000
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