New Delhi35 minutes ago
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Indian budget airline SpiceJet’s troubles have increased due to non-payment of dues. Dubai Airports operator Dubai Airports on Thursday suspended check-in service for SpiceJet flights at Dubai International Airport. The company owes ground-handling partner ‘dnata’ and the airport about 14 million dirhams (about ₹35.8 crore).
Following this decision, the airline’s departure operations were badly affected and SpiceJet had to cancel four of its flights from Dubai to Amritsar, Jaipur, Mumbai and Delhi on November 12. Dubai Civil Aviation Authority has also summoned the station manager of the airline for not announcing flight cancellation.
Payment was not made since October 13, warning was given on Monday
‘Dubai Airports’, which operates Dubai International Airport and Al Maktoum International Airport, had informed SpiceJet about this on Monday itself. The operator had told the airline that its total dues had reached Dh14 million and no payment had been made by the company since October 13.
The airport operator had given a clear warning that if the entire dues were not paid by November 12, check-in services would be stopped. After the deadline ended, the airport administration took this strict step on Thursday.
Only two late flights allowed check-in
After check-in services were halted, the airport administration allowed its ground-handling partner ‘dnata’ to process check-in for only two late SpiceJet flights—Ahmedabad-bound SG-5115 and Delhi-bound SG-5106. This was done because both these flights were originally scheduled to take off before the suspension was implemented.
Apart from this, the airport administration made it clear that until the entire outstanding amount is deposited, the check-in service for all other SpiceJet flights will remain suspended.
Station manager gave instructions to cancel flights, empty planes were recalled
Following the update from the airport administration, SpiceJet’s Dubai station manager sent an email to the flight operations team asking them to cancel all flights departing from Dubai except those two flights. “As mentioned in my previous mail, until this matter is fully resolved, we announce the cancellation of all flights departing from Dubai International Airport (DXB),” the manager wrote in the email.
Subsequently, the airline issued instructions on November 12 to cancel four flights from Dubai to Amritsar, Jaipur, Mumbai and Delhi, citing ‘non-payment to dnata’ as the main reason. According to another internal communication, these four flights were later re-scheduled to operate as ‘ferry service’ (empty aircraft without passengers) with the same flight numbers.
Aviation Authority’s rebuke: Instructions to make alternative arrangements for stranded passengers
Dubai Civil Aviation Authority expressed displeasure and summoned the station manager of SpiceJet for not making an official announcement on the cancellation of flights on time despite check-in being closed. According to an internal email sent on November 12, the station manager told the flight operations team that the aviation authority has given strict instructions to immediately make alternative arrangements for the stranded passengers at the airport.
Quarterly results not released after February, upper circuit of 5% in shares
SpiceJet is facing continuous pressure on the financial front. The company is yet to release its next quarterly financial results after announcing its December quarter results in February. However, amid this news of Dubai Airport, SpiceJet shares closed at ₹ 8.26 per share on BSE on Thursday with an upper circuit of 5%.
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