Airports Authority of India to ask SpiceJet for part payments

By: |
New Delhi | Updated: January 14, 2015 2:19:58 PM

SpiceJet received a breather on payment of airport charges till December 31, 2014, which was extended by an added 10 days and now till Jan 15.

Concerned over the rising overdues in airport charges, the Airports Authority of India (AAI) is considering asking SpiceJet to make partial payments of landing, parking and navigational services’ fees on a daily basis from January 16.

Sources in AAI informed SpiceJet’s dues have shot up to Rs 260 crore from Rs 200 crore in the last one month.

“We are trying to support the airline as we would not want it to shut down operations. But overdues including interest has increased to around Rs 260 crore. We have discussed the matter internally and decided to ask them to give additional bank guarantees and make current payments for 50 per cent of airport and navigation expenses incurred for daily operations from Jan 16”, said a senior government official on condition of anonymity.

SpiceJet received a breather on payment of airport charges till December 31, 2014, which was extended by an added 10 days and now till Jan 15, 2015.

With the airline’s pending dues rising in this period, AAI has now decided to ask the airline to start making current payments at least partially, unless further instructions for giving relief are issued by the civil aviation ministry.

A meeting between potential investors, SpiceJet executives, civil aviation ministry officials to discuss the proposed investment is scheduled to take place later this week. SpiceJet received an extension in the moratorium for payment of airport charges till January 15 last week as the airline renewed two bank guarantees totalling Rs 30 crore.

“They renewed two bank guarantees against which an extension till January 15 has been given. We have asked them to give additional bank guarantees of Rs 180 crore. We will return the guarantees as and when they start paying dues,” added the official.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Generics beat trend in CY14, clock 14.4 pct growth in sales
2Twitter in talks to partner/acquire start-up ZipDial
3Blackstone-Embassy targets Rs 5k-cr REIT listing in FY16