Trouble Mounts For SpiceJet, AAI Withdraws Credit Facility

Owing to the mounting dues of loss-making carrier SpiceJet, the Airports Authority of India (AAI) has decided to pull away credit facility relating to airport user fees, which it has to provide to the airline at all airports across India since Thursday midnight.

A senior official at the AAI headquarters in New Delhi told The Times of India (TOI) that the office of the executive director (finance) has issued a circular to all airport authorities asking them to allow SpiceJet to operate only on cash-and-carry basis.

Currently, the airline is operating one international and 10 domestic flights out of Pune to Bengaluru, Chennai, Delhi, Ahmedabad, Kochi, Goa and Hyderabad, apart from Sharjah.

As Spicejet also plans to cut costs, it will operate 22-24 Boeing planes until at least mid 2015, its chief operating officer told Reuters.
Earlier in September, the airline also reduced its fleet by nearly a third of its original strength, but prior to this cut, SpiceJet had been operating 35 planes.