Tightening the screw on cash- strapped budget carrier SpiceJet, Airports Authority of India (AAI) is considering putting the airline on the cash-and-carry mode soon if it does not furnish a bank guarantee against its dues to the airport operator, which stand at around Rs200 crore.
"AAI is planning to put SpiceJet on cash-and-carry mode from Wednesday if it does not by that time furnish to the airport operator a bank guarantee against its dues," sources said. Also, aviation regulator DGCA is likely to issue a show- cause notice to the airline for defying its directives regarding advance bookings, sources said here.
"DGCA is likely to issue a show-cause notice to SpiceJet as the airline continues accepting advanced bookings of beyond one month against the directives on the issue," official sources said. DGCA has asked the airline to stop taking bookings by tomorrow of more than one month in advance, they said, adding, 'If it does not, it will be served a show-cause notice."
The sources said that although the regulator's action will not lead to the cancellation of the airline's licence by itself, they added that it could force "a series of actions, which could lead to the cancellation of licence".
An airline spokesperson, however, defended the advance bookings, saying it has already informed the regulator that it wants to discuss the issue this week. Concerned over the deteriorating condition of SpiceJet and large-scale flight cancellations, aviation regulator DGCA had on Friday withdrawn 186 of its slots and asked it to clear salary dues of all its employees within the coming 10 days.