Three out of four major airlines in India cannot get fuel on credit

  • The Airports Authority of India has decided to put GoAir on "cash and carry basis" from Tuesday because of non-payment of dues.
  • Under this, the carrier will have to pay charges daily at AAI owned airports for operating flights from there.
  • GoAir is the third airline to continue on a "cash and carry basis" mode, after Air India and SpiceJet.
The Airports Authority of India has decided to put GoAir on "cash and carry basis" from Tuesday because of non-payment of dues.

"The competent authority has approved to put the operation of GoAir on cash and carry basis out of all AAI airports with effect from 0001 hrs of 11th August 2020," according to the order issued by the Airport Authority of India.

"The same may also be informed to the concerned officials of GoAir at respective stations/airports/regions to make necessary arrangements to pay the required amount at the respective stations for day-to-day operation," the order added.

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Turbulent times in aviation sector

GoAir is the third airline to continue on a "cash and carry basis" mode, after Air India and SpiceJet.

However, the Wadia-owned GoAir has said there would be no impact on its flight operations."GoAir is engaged in constructive discussions with AAI and would like to assure our customers that there is no impact on GoAir's operations. GoAir flights will continue to be operated as normal at all airports," the airline's spokesperson said.

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According to reports, GoAir has to pay ₹50 crore as dues to AAI, the body which is responsible for maintaining and managing civil aviation infrastructure in India.

What is a cash and carry basis?

Cash and carry basis is implemented on airlines because of non-payment of dues. Under this, the carrier will have to pay charges daily at AAI owned airports for operating flights from there.

An airline has to pay various charges such as air navigation, landing, parking etc. to AAI, which works under the Civil Aviation Ministry, to use facilities at any of its more than 100 airports.
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