New Delhi: The Airports Authority of India (AAI) on Monday decided to put Wadia Group-owned GoAir on a 'cash and carry' mode from Tuesday onwards as the airline failed to pay dues up to Rs 50 crore.
Cash and carry means Go Air will have to make payment on a daily basis or per flight basis for parking and landing purposes at the airports.
"The Competent Authority has approved to put the operation of M/s Go Air on Cash & Carry basis out of a AAI airports w.e.f. 0001 hrs. Of 11th August 2020," stated the AAI General Manager (Finance)- Revenue, R Ramani in an internal letter to regional directors of all the four regions.
"The Same may also be informed to the concerned officials of M/s Go Air at respective stations/Airports/Regions to make necessary arrangement to pay the required amount at the respective stations for day to day operation," the letter added.
In a query to ETV Bharat, the airline said, "GoAir is engaged in constructive discussions with AI and would like to assure our customers that there is no impact on GoAir's operations. GoAir flights will continue to be operated as normal at all airports.
As per the airline sources, currently, GoAir is operating only about 18 aircraft out of its entire fleet of 55 aircraft.
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Last month, SpiceJet was also put on a 'cash and carry' mode as the airlines pending dues crossed Rs 200 crore, but the AAI deffered its decision as the airline assured a payment plan and timely payments
The aviation sector has been hit hard due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic. All airlines in India have taken cost-cutting measures by announcing pay cuts, LWP and firing of employees in order to conserve cash flow.
Aviation consultancy firm CAPA India had warned that Indian aviation industry is at its breaking point due to massive losses on account of Covid-19.
Most airlines in India do not have the holding power to survive and multiple airlines failures could setback air connectivity in India by 3-5 years, the aviation consultancy firm had said.
