From mint · Livemint · · 1m 10s
SpiceJet flights cancelled due to financial crisis
SpiceJet faces flight cancellations as airport dues and crew shortages worsen financial crisis.
In brief
SpiceJet faces flight cancellations as airport dues and crew shortages worsen financial crisis. SpiceJet's flight cancellations across India are linked to unpaid airport dues, delayed salaries, and crew shortages. Originally reported by mint.
SpiceJet operations restricted
Airport authorities have restricted SpiceJet's operations over its inability to pay mandatory airport charges.
“Airport authorities have restricted the financially distressed airline's operations over its inability to pay mandatory charges for using airport facilities and services”
Cash and Carry arrangement
SpiceJet operates under a 'Cash and Carry' arrangement requiring payment before airport services.
“The airline has been operating under a 'Cash and Carry' arrangement for airport charges, which requires it to clear payments before availing of services”
Unpaid airport dues
SpiceJet struggles to clear airport charges including Route Navigation Charges and Terminal Navigation Landing Charges.
“Airport charges cover various services provided to aircraft, including Route Navigation Charges and Terminal Navigation Landing Charges”
Passenger Service Fee unpaid
SpiceJet has failed to pay Passenger Service Fee collected from passengers for airport facilities.
“The airline has reportedly struggled to clear these mandatory payments, creating difficulties in maintaining regular flight operations”
Salary delays and crew shortages
SpiceJet hasn't paid salaries for nearly four months causing high employee attrition.
“The airline has not paid salaries to its employees for nearly four months, according to The New Indian Express”
Flight cancellations due to crew
Four SpiceJet flights canceled in Delhi after employees refused duty due to unpaid salaries.
“On September 19, four SpiceJet flights scheduled to depart from Delhi airport could not take off after employees reportedly refused to report for duty over non-payment of their dues”
Limited operational fleet
Only 12 of SpiceJet's 60 aircraft were operational as of Wednesday.
“According to the media report, only 12 of SpiceJet's 60 aircraft were operational as of Wednesday”
Tourism concerns
Tourism stakeholders worry about SpiceJet cancellations affecting Andaman and Nicobar Islands.
“The Indian Association of Tour Operators approached Civil Aviation Minister Ram Mohan Naidu on Tuesday, seeking government intervention over repeated cancellations of SpiceJet flights to Sri Vijayapuram airport”
SpiceJet fundraising meeting
SpiceJet board to meet on November 18 to consider raising fresh capital.
“SpiceJet's Board of Directors is scheduled to meet on November 18 to consider and approve a proposal to raise fresh capital”
The essence
SpiceJet's flight cancellations across India are linked to unpaid airport dues, delayed salaries, and crew shortages.
