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Friday, 23 January 2015

Lessons learnt from Kingfisher Airlines fiasco, MIAL plays hardball with SpiceJet

Mumbai: Having burnt their fingers during the debt-ridden Kingfisher Airlines debacle, the Mumbai International Airport Limited (MIAL), which operates the airport in Mumbai, has put beleaguered carrier SpiceJet on cash-and-carry mode since Tuesday. The move follows after the airline allegedly failed to clear its earlier dues, said sources.


The airline management on its part claim that the issue was sorted out after they held meetings with the top management of the airport operator. "This issue has been sorted out between Spicejet and MIAL," said a SpiceJet spokesperson.

In a letter communicated to Sanjiv Kapoor, CEO of SpiceJet airline, the airport operator claims that the carrier will not be allowed to reload fuel unless a payment of Rs 2 crore is made.

"We will allow you to pay 50 per cent of daily charges but it cannot be linked to the infusion of funds by Mr Ajay Singh i.e 50 per cent of daily charges will continue only for limited period till 31st January, 2015 and thereafter 100 per cent payment has to be made and backlog payment has to be cleared in 1st week of February, 2015," states a letter undersigned by RK Jain, CEO of MIAL.
21/01/15 Shahkar Abidi/Daily News & Analysis

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