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SpiceJet pays ₹4 53-cr principal amount dues to AAI; seeks time to pay interest

SpiceJet pays ₹4.53-cr principal amount dues to AAI; seeks time to pay interest Mumbai | Updated on Forum Gandhi SpiceJet has made partial payments of dues towards the Airports Authority of India to avoid encashment of its bank guarantee. It has paid ₹4.31 crore as upfront cash, partial interest payment of ₹14 lakh, ₹20 crore TDS till December 2020. The debt-strapped airline has also proposed to pay the rest TDS amount in two instalments before June 30 and requested waiver of interest dues. According to a letter submitted by SpiceJet to AAI on April 1, the low-cost carrier said that it has paid ₹4.53 crore as on March 31, thus bringing the current outstanding principle amount of of ₹115.41 crore within 75 per cent of bank guarantees and 100 per cent of cash deposit towards total security cover of ₹153.63 crore complying with the settlement proposal.

Travel News - MoCA asks airlines to rejig UDAN flights to cut viability gap funding by 40%

MoCA asks airlines to rejig UDAN flights to cut viability gap funding by 40% The Ministry of Civil Aviation (MoCA) has asked all airlines to either reduce the frequency of flights or the number of seats per flight such that their overall Viability Gap Funding (VGF) requirement on routes over 500 km, awarded under the UDAN scheme, is lowered by 40 per cent, reports Forum Gandhi for The Hindu Business Line. According to industry sources, the Ministry has sent an email to all airlines operating Regional Connectivity Scheme (RCS) routes awarded under UDAN 1, 2, 3, 3.1 and 4, since its inception in 2017. RCS, or more popularly known as UDAN (Ude Desh ka Aam Naagrik) scheme, is a government initiative to connect the country s under- and un-served airports. The government provides VGF for a set time period to airlines operating on these routes.

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