GoAir put on cash and carry mode by AAI with effect from 11 August

State-owned Airports Authority of India (AAI), which had earlier asked no-frill carrier GoAir to clear its unpaid dues of about ₹50 crore, has put the airline on a cash and carry mode from 11 August, according to an internal circular from the public sector company.

This means that that GoAir will now have to pay upfront for utilising services of airports operated by AAI.

"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.

When contacted, Wadia Group-controlled GoAir said that its operations will go on as usual at the airports, and passengers would not be affected by the decision of AAI.

“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.

Indian carriers, including GoAir, been hit by the covid-19 pandemic, and the resulting lockdowns and travel curbs as well as fears of contracting infection, which has dented demand.

Currently, airlines are not been able to cover their fixed costs with the proceeds from their operations, which has forced some of them to default on vendor-payments.

Airlines in Asia-Pacific countries have been worst affected by the covid-19 pandemic that have affected millions globally. Airlines in the Asia-Pacific region, including India, will post losses of $29 billion in 2020, making it the worst region for aviation, thanks to the coronavirus pandemic, International Air Transport Association (IATA) has said.

Source: https://www.livemint.com/

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