GoAir placed on cash-and-carry mode
The Wadia Group-owned GoAir has been put on cash-and-carry (pay as you fly) mode by the Airports Authority of India (AAI) over the pending dues.
GoAir is the third such airline to go on this mode, after Air India and SpiceJet. GoAir has said there will be no impact on its flight operations.
The Airports Authority of India’s letter dated August 10 stated the authority has put “GoAir on cash-and- carry mode for all AAI airports across the country from Tuesday (00:01hrs of August 11)”.
GoAir is engaged in constructive discussions with AAI and would like to assure our customers there will be no impact on GoAir’s operations. GoAir flights will continue to run, as normal, at all airports,” a GoAir spokesperson said.
Currently, airlines have not been able to cover their fixed costs with the low returns from their operations, forcing some of them to default on vendor-payments.
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.