Mumbai airport asks SpiceJet to clear dues; airline says issue sorted

Mumbai International Airport Pvt Ltd (MIAL) on Tuesday asked low cost carrier SpiceJet to clear its dues to continue operating from the Mumbai airport, an issue the airline claimed has been "sorted out"

Mumbai International Airport Pvt Ltd (MIAL) on Tuesday warned low cost carrier SpiceJet to immediately clear its dues amounting to Rs 5 crore to continue operating from the Mumbai airport, an issue the airline claimed has been "sorted out".

Though the airport operator had warned the carrier to clear its dues, it seems the matter between the two parties has been sorted out.

SpiceJet

In a letter that was sent to the Sanjeev Kapoor, MIAL asked the airline to pay its dues only after which it could be allowed to carry on operating from Mumbai. This would have directly hit the passengers. But by the Tuesday evening the airline has sorted things with MIAL. "This issue has been sorted out between SpiceJet and MIAL" stated Official spokesperson of SpiceJet

Mumbai International Airport Limited (MIAL), the private airport operator, in its notice to SpiceJet also said it will put the airline on cash-and carry mode of payment, if it did not make the payment, sources said.

"SpiceJet has been told to pay Rs five crore, which it owes to the airport on account of landing and parking charges. Besides, it has also been asked to furnish a bank guarantee of Rs 15 crore as collateral against the future dues," they said.

The sources claimed that the private airport operator has already given a 50 per cent waiver in dues and it is "high time" the airline should clear all the outstanding payments.

A SpiceJet spokesperson, said that the issue with MIAL had been sorted out.

"This issue (of notice for dues) has been sorted out with the Mumbai Airport," the spokesperson said in a statement.

"We are in the final stages of ownership change and recapitalization. We appreciate the support and understanding we have received from our partners and look forward to a long, cooperative, and mutually beneficial relations with them as we continue on our transformation path," SpiceJet Spokesperson

SpiceJet owes around Rs 240 crore to the Airports Authority of India for using its airports in the country as well.

SpiceJet, which was facing fund drought for almost one year till recently, is currently in the process of ownership and control change.

Last week, the carrier went back to original promoter Ajay Singh in a multi-layered deal worth up to Rs 1,500 crore, with Maran family agreeing to cede control with transfer of over 53 per cent stake in the airline.

In December last year, the airline remained grounded for one full day after the oil companies refused to provide fuel without cash payment.

However, the government came to its rescue and asked the oil companies and AAI to extend the credit facility period to enable the airline run its operations.

 

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