Mumbai Airport asks SpiceJet to clear dues

Mumbai: Mumbai Airport Tuesday asked budget carrier SpiceJet to immediately clear its dues amounting to Rs five crore and provide bank guarantee of Rs 15 crore, an issue the airline claimed has been "sorted out".

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 here.

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

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

MIAL refused to comment on the issue when contacted.

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

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

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 percent 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.

Later, SpiceJet, in a separate statement, said that the airline is in the final stages of ownership change and recapitalisation and was looking for a long-term partnership with its partners and vendors.

"We are in the final stages of ownership change and recapitalisation.

"We appreciate the support and understanding we have received from our partners and look forward to a long cooperative and mutually beneficial relationships with them as we continue on our transformation path," the statement said.