SpiceJet (SG, Delhi International) has denied claims the Airports Authority of India (AAI) has required it to fly into its airports on a cash-and-carry basis. Last week, a prominent Indian news outlet published a story saying this had occurred, citing an anonymous AAI spokesperson.
"The media report is incorrect and false," an official SpiceJet spokesperson told ch-aviation on the record. "AAI has not put SpiceJet on cash and carry. Additionally, SpiceJet has deposited a bank guarantee of INR400 million rupees (USD4.8 million) with AAI. Therefore, the question of AAI putting the airline on cash and carry does not arise."
"M/s SpiceJet Ltd. is operating on Cash & Carry mode for its all lndia traffic operations," an unnamed AAI spokesperson told CNBC-TV18 on June 5, 2024. SpiceJet says the allegation is slanderous. The report alleged the carrier's debt exceeds an agreed credit limit and that it has failed to make on-time payments on multiple occasions. ch-aviation does not suggest this is true, only that it was reported.
The AAI manage 137 airports in India, including 24 international airports and 80 domestic airports. According to ch-aviation capacities data, SpiceJet operates in and out of 29 airports within India. ch-aviation research indicates SpiceJet flies into the following AAI-operated airports - Jabalpur, Bhavnagar, Tirupati, Shillong, Kandla, Pune, Kozhikode, Chennai, and Patna. Any cash and carry arrangements would require an airline to make advance payments to cover specific departures or the day's bank of flights at each airport. Typically, AAI extends a 15-day credit facility to carriers, requiring payment of accrued dues every fortnight. AAI did not respond to ch-aviation's request for comment.
Meanwhile, a fresh insolvency petition has been lodged against SpiceJet just as the airline has managed to settle another. National Company Law Tribunal (NCLT) filings show Engine Lease Finance filed a case against SpiceJet in the specialist bankruptcy court on May 28, 2024. The matter is listed for mention on June 13. The lessor claims circa USD16.72 million in overdue lease payments and interest on eight engines. The matter had been the subject of litigation in the Delhi High Court. Last October, SpiceJet was ordered to pay the Belgium-based lessor an instalment of around USD2 million and return the engines by January 2024. The airline eventually returned the last of them in early March.
In addition to the Engine Lease Finance matter, upcoming SpiceJet NCLT diary dates include facing down insolvency petitions from three DAE Capital special purpose vehicles, three Aircastle special purpose vehicles, Wilmington Trust SP Services (Dublin), and until recently, Raymarch Technologies. However, on June 7, SpiceJet informed the Bombay Stock Exchange that it had settled with Raymarch, a business consultancy owed INR27 million (USD323,268) by the carrier. On the same day, Raymarch told the NCLT that it would withdraw its insolvency petition. The court adjourned the matter until August for mention and closure.
In addition to the NCLT matters, SpiceJet has a busy roster of matters to defend in the Delhi High Court where various arties are attempting to enforce previous judgements, orders, and undertakings.
