SpiceJet dives over 12% as AAI puts it on cash-and-carry

Shares of low-cost airline SpiceJet dived over 12 per cent in intraday trade to touch a low of Rs 16.15.

The fall came in the wake of Airports Authority of India (AAI) deciding to withdraw credit facility relating to user fee to already financially-troubled SpiceJet at all airports from Thursday midnight.

The move has been spurred by mounting dues that the airline has to pay AAI. A senior official at AAI said a circular has been issued by office of ED ( finance) to all airport authorities asking them to let the airline operate only on cash-and-carry basis.

At 12:30 pm, the stock was trading at Rs 16.45, down 11.08 per cent on BSE.

Meanwhile, Civil Aviation Minister Ashok Gajapathy Raju said yesterday that the airline sector is running through a "lot of turbulent weather" with troubled Spicejet seeming to give "us heart attacks".

"We are running through a lot of turbulent weather...not only the public sector, private sector is also crashing. (With) Kingfisher crashing and, right now, SpiceJet seems to be giving us heart attacks as far as airlines are concerned," Raju had said in New Delhi yesterday.

The minister's comment comes against the backdrop of industrialist Kalanithi Maran's budget carrier SpiceJet curtailing its operations by reducing both flights and fleet, citing fund crunch.

(With inputs from TNN)