Twitter
Advertisement

Lessons learnt from Kingfisher Airlines fiasco, MIAL plays hardball with SpiceJet

In a letter communicated to Sanjiv Kapoor, CEO of SpiceJet airline, the airport operator claims that the carrier will not be allowed to reload fuel unless a payment of Rs 2 crore is made.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Having burnt their fingers during the debt-ridden Kingfisher Airlines debacle, the Mumbai International Airport Limited (MIAL), which operates the airport in Mumbai, has put beleaguered carrier SpiceJet on cash-and-carry mode since Tuesday. The move follows after the airline allegedly failed to clear its earlier dues, said sources.

The airline management on its part claim that the issue was sorted out after they held meetings with the top management of the airport operator. "This issue has been sorted out between Spicejet and MIAL," said a SpiceJet spokesperson.

In a letter communicated to Sanjiv Kapoor, CEO of SpiceJet airline, the airport operator claims that the carrier will not be allowed to reload fuel unless a payment of Rs 2 crore is made.

"We will allow you to pay 50 per cent of daily charges but it cannot be linked to the infusion of funds by Mr Ajay Singh i.e 50 per cent of daily charges will continue only for limited period till 31st January, 2015 and thereafter 100 per cent payment has to be made and backlog payment has to be cleared in 1st week of February, 2015," states a letter undersigned by RK Jain, CEO of MIAL.

The letter warns further: "We would like to put it very clearly on record that we do not want SpiceJet to be in an embarrassing situation. It is in your hand only to avoid such embarrassment."

The sources said that the net outstanding at present stands around Rs 5 crore, while MIAL wants an additional Rs15 crore in the form of bank deposit towards surety. MIAL had en-cashed SpiceJet's Rs15 crore on December 19 last year after dues piled up.

An MIAL official said, "We are now cautious after the closing down of Kingfisher Airlines which owed several crore of rupees to us and therefore are taking no chances this time."

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement