SpiceJet zooms ~3% on clearing all outstanding dues of Airports Authority of India

2 Aug 2022 , 10:43 AM

SpiceJet Limited informed that it has entered into a full and final settlement with the Airports Authority of India. Pursuant to this, the aircraft operator has cleared all outstanding principal dues of the airport operator.

With this, SpiceJet will not be required to remain on ‘cash and carry' at AAI-run airports across the country and will set back its position to advance the payment mechanisms for daily flight operations.

As SpiceJet has cleared the pending dues, it reflects improved cashflows for the airline.

In another good news for the airline, the authority has agreed to release the Rs50 crore bank guarantee following clearance of all principal dues. This will create additional liquidity for the airline.

SpiceJet's domestic network spans the entire country, with the airline serving 51 domestic destinations.

SpiceJet, the country's largest regional player, is a pioneer of the regional connectivity scheme, connecting the country's most remote parts by air.

As the lockdown impacted major companies in the tourism and aviation sector, SpiceJet is all set to make a comeback after two gloomy years.

At around 10.36 AM, SpiceJet was trading at Rs41.55 up by Rs1.25 or 3.1% from its previous closing of Rs40.30 on the BSE. The scrip opened at Rs40.90 and has touched intraday high and low of Rs42 and Rs40.65 respectively.