Jet, SpiceJet work out compromise formula with Airports Authority of India

Jet Airways and SpiceJet have agreed to pay a token amount to the Airports Authority of India (AAI). to re-adjust their payment schedule of dues to avoid getting put into a cash-and-carry mode of operations, sources said.

Jet Airways has agreed to pay Rs 80 crore to the AAI by November 29 and another Rs 12 crore by December 10 to clear its dues with the state-owned airports operator.

SpiceJet will pay Rs 25 crore to the AAI by November 29, while a further Rs 18 crore previously paid by SpiceJet that had not been reflected has also now been adjusted.

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SpiceJet additionally has bank guarantees of Rs 60 crore with the AAI.

National carrier Air India also has dues of Rs 1,800 crore, VP Agarwal,

AAI chairman, said separately at an event organised by the AAI Officers Association.

But he added that despite the dues and the privatisation of airports, AAI still expects a net profit of Rs 1,500 crore, more than doubling its net profit from 2012-13, which was at Rs 655.66 crore.