Get debt pay off plan ready by 15 Dec, DGCA tells SpiceJet

New Delhi: The DGCA today sought a firm payment plan from SpiceJet. The airline owes Rs 1,600 crore in dues to various stakeholders. At a meeting with top officials of the airline, the regulator stuck to its earlier diktat - a firm plan of paying off dues to all creditors. SpiceJet has been asked to come back with a plan by the 15th.

According to sources, airline officials told the DGCA they are working on this and will revert soon. But the DGCA’s order banning forward bookings beyond a month would be a huge drain on its revenues, the airline officials are believed to have told the regulator.[caption id=“attachment_112467” align=“alignleft” width=“380”]  Trouble for SpiceJet. AFP[/caption]

After reneging on DGCA’s earlier order, SpiceJet today stopped bookings beyond a month. COO Sanjiv Kapoor has said earlier advance bookings account for a third of the airline’s revenues.

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After the DGCA meeting, SpiceJet officials also met the AAI chairman. Sources said the AAI stays firm on its plan - it wants to put SpiceJet on cash-and-carry after tomorrow since the airline owes it Rs 200 crore.

Sources said if SpiceJet pays up even partly, this action by the AAI may be deferred.

Else, from Thursday the airline will have to pay airport dues upfront before each flight takes off from any AAI airport - something the cash-strapped airline can ill afford as of now.

Sources said in addition to putting the airline on cash-and-carry, AAI will also begin encashing bank guarantees of the airline.