Airports Authority of India (AAI) on Monday put GoAir on cash-and-carry mode from the early hours of August 11.
This means that that GoAir will now have to pay upfront for utilising services of airports operated by AAI.
Recently, the authority had warned the airlines of putting it under cash-and-carry mode if the applicable dues are not paid in time.
GoAir owed ₹60.75 crore dues to the AAI and had issued ₹82 crore bank guarantee.
“The competent Authority has approved to put the operation of M/s Go Air on cash & carry basis out of all AAI Airports w.e.f. 0001 hrs. of 11th August 2020,” the circular said.
“The same may also be informed to the concerned officials of M/s GoAir at respective stations/Airports/Regions to make necessary arrangement to pay the required amount at the respective Stations for day-to-day operation,” it added.
Initially, the airlines had denied that it had been put on cash and carry mode and stated that it maintained a very close and constructive working relationship with AAI.
When contacted, GoAir, controlled by the Wadia Group, announced that operations at the airports would continue as usual and that the passengers would not be affected by the AAI’s decision.
“GoAir is engaged in constructive discussions with AAI and would like to assure our customers that there is no impact on GoAir’s operations,” the company added in a statement.
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Currently, GoAir is only operating 15-18 aircraft out of its total fleet of 55 aircraft.
Alongside this, it is also mulling over retiring two of its A320 CEOs earlier than scheduled as part of its cost-cutting measure to deal with subdued air travel.
Indian airlines, including GoAir, have been hit by the Covid-19 pandemic and the resulting lockdowns and curbs, as well as fear of infection, which has weighed on demand.
Currently, airlines are unable to cover their fixed costs with the proceeds from their operations, which has forced some of them to default on payments from providers.
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