SpiceJet enters into final settlement with AAI

The low-cost airliner has entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.

With this, SpiceJet will no longer remain on 'cash and carry' at AAI run airports across the country and will revert to advance payment mechanism for daily flight operations.

"SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in the recent times," the airliner said in a statement.

Further, AAI will release SpiceJet's Rs 50 crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline.

SpiceJet is an IATA‐IOSA certified airline that operates a fleet of Boeing 737s, Q‐400s & freighters. It is the country's largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy class seating in India. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on‐time, efficient and seamless cargo connectivity across India and on international routes.

On consolidated basis, it reported a net profit of Rs 42.47 crore as against a net loss of Rs 66.78 crore. Revenue from operations rose 34.8% year on year to Rs 2204.68 crore in the quarter ended 31 December 2021.

Shares of SpiceJet climbed 5.22% to Rs 40.30 on Monday, 1 August 2022.

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