SpiceJet enters into full and final settlement with AAI, clears all outstanding principal dues

SpiceJet has entered into a full and final settlement with the Airports Authority of India (AAI) and has cleared all outstanding principal dues of the airport operator.

With this, SpiceJet will no longer remain on 'cash and carry' at AAI run airports across the country and will revert to advance payment mechanism for daily flight operations. SpiceJet's ability to clear the pending dues reflects the airline's improved cash flow in the recent times.

In another big boost for the airline, AAI will release SpiceJet's INR 50 Crore bank guarantee following the airline clearing all its principal dues. This will result in additional liquidity for the airline.

SpiceJet has flown with the highest passenger load factor in the Indian skies for a record seven years. Starting April 2015, SpiceJet has recorded the highest occupancy among all Indian domestic airlines - a feat unparalleled in global aviation. The airline also holds the envious distinction of having flown with a Passenger Load Factor (PLF) of more than 90% for a record 58 consecutive months.

SpiceJet's domestic network covers the length and breadth of the country with the airline operating to 51 domestic destinations. Pioneer of the regional connectivity scheme, SpiceJet is the country's largest regional player helping connect the remotest parts of the country by air.

The airline's focus on providing direct flight connectivity to regional hubs not only ensures better connectivity, it also has a cascading effect on tourism and economic activity in the region. SpiceJet has added multiple UDAN destinations to the country's aviation map including Pakyong, Jharsuguda, Kandla, Darbhanga, Kanpur, Ajmer (Kishangarh), among others.

Shares of SPICEJET LTD was last trading in BSE at Rs. 40.30 as compared to the previous close of Rs. 38.30. The total number of shares traded during the day was 964511 in over 5958 trades.

The stock hit an intraday high of Rs. 42.50 and intraday low of 38.40. The net turnover during the day was Rs. 39337968.00.

Source : Equity Bulls

Keywords

SPICEJET INE285B01017 AAI Settlement Outstanding