GoAir put on cash-and-carry mode by Airports Authority of India

Airports Authority of India has put GoAir on a cash and carry basis, reflecting the cash crunch at the low-cost airline.

AAI passed an order on August 10, stating, "Competent authority has approved to put the operation of GoAir on a cash and carry basis at all AAI airports, with effect from 001 hours of August 11."

It added, "The same may also be informed to the concerned officials of GoAir at respective stations/airports/regions to make necessary arrangement to deposit the required amount at respective stations for day-to-day operations."

Responding to a Moneycontrol query, the airline spokesperson said:

"GoAir is engaged in constructive discussions with AAI 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.”

In a cash-and-carry basis, the airline has to pay, on a daily basis, for using facilities provided in an airport. Usually, airlines make these payments monthly. These facilities include parking of aircraft, landing and luggage handling.

A BusinessLine report had earlier this month said that AAI had asked GoAir to clear dues of Rs 60 crore.

GoAir, like the rest of its peers, has been impacted because of the COVID-19 disruption. While the financial numbers of the privately held company of the Wadia family is not known, the overall industry has been struggling with low loads and partial capacity utilisation since flights resumed on May 25.