Will Soon Clear All Dues To AAI: GoAir

06/01/2015 8:54 AM IST | Updated 15/07/2016 8:24 AM IST
NEW! HIGHLIGHT AND SHARE
Highlight text to share via Facebook and Twitter
The India Today Group via Getty Images
INDIA - AUGUST 03: Jeh Wadia, Managing Director GoAir, the low-cost carrier promoted by the Wadias of Bombay Dyeing, poses with Models of Aircraft / Airbus A320 and 737, at office, in Mumbai, India. Potrait, Sitting (Photo by Soumik Kar/The India Today Group/Getty Images)

Budget airline GoAir, which was recently served a notice by the Airports Authority of India to clear its dues, today said it will soon clear all its outstanding amount with the state-owned airport operator.

"As agreed with AAI, we have already reduced our outstanding through some payments. Additional amounts will be paid shortly," GoAir said in a statement.

The airline's dues currently stand at Rs 38 crore, exceeding the

bank guarantee of Rs 30.5 crore.

The carrier said that the dues, which are in excess of the collateral amount now, will be brought in line with the bank guarantee within the deadline set by the AAI.

Acting tough after its experiences with private carriers Kingfisher and SpiceJet, the Airports Authority of India (AAI) had asked the Wadia Group-promoted GoAir to pay its dues that exceeds its bank guarantee.

Due to AAI's pressure last year, GoAir had doubled the collateral amount or bank guarantee from about Rs 15 crore to Rs 30.5 crore.

Although the industry is going through a financially turbulent time, Go Air has been able to achieve remarkably positive results in the third quarter, and we do not have any concern for the future, the airline said in the statement.

The Mumbai-based airline operates across 22 destinations in the country with a fleet of 19 Airbus A320s.

More On This Topic