New Delhi: Kalanithi Maran-promoted airline SpiceJet has informed the civil aviation ministry that it has cleared all income tax dues for 2013-14 and service tax dues till today amounting to Rs 400 crore in the past three months - a key reason behind the low-cost carrier returning aircraft to lessors.
"The airline gave us a letter on Tuesday, informing us that it has cleared all government dues for FY14," a government official said.
SpiceJet had diverted money allocated for operational expenses to clear these statutory dues, said the official, who did not wish to be identified. "This led to a situation where the airline had to return aircraft since it could not pay the lessors. We have been informed that the situation is set to get normal once the airline gets equity infusion," the official added. The airline's fleet has come down from about 35 Boeing aircraft till June to 24, of which 22 are operational and two are grounded. This has led to a reduction of over 40 flights a day, from 345 a day in June. According to government officials, about Rs 70 crore is the interest component in the airline's total dues that it had not paid to income tax and service tax departments since EARLY 2013.
27/11/14 Mihir Mishra/Economic Times
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"The airline gave us a letter on Tuesday, informing us that it has cleared all government dues for FY14," a government official said.
SpiceJet had diverted money allocated for operational expenses to clear these statutory dues, said the official, who did not wish to be identified. "This led to a situation where the airline had to return aircraft since it could not pay the lessors. We have been informed that the situation is set to get normal once the airline gets equity infusion," the official added. The airline's fleet has come down from about 35 Boeing aircraft till June to 24, of which 22 are operational and two are grounded. This has led to a reduction of over 40 flights a day, from 345 a day in June. According to government officials, about Rs 70 crore is the interest component in the airline's total dues that it had not paid to income tax and service tax departments since EARLY 2013.
27/11/14 Mihir Mishra/Economic Times
