Bangalore: Indian low-cost carrier SpiceJet Ltd said it had paid all its dues to the state-run airport operator Airports Authority of India (AAI), raising its shares by nearly 5%.
The company said the airline would revert to an upfront payment mechanism for its daily operations, and AAI would issue a bank guarantee of 500 million rupees ($6.33 million).
The airline has been in the news recently after several technical glitches in its flights. One of its lessees based in Dubai has asked the regulator to deregister three SpiceJet aircraft.
Adding to its woes, the aviation regulator ordered the airline to slash its approved fleet to 50% this summer for eight weeks citing safety snags. The airline said on Monday its flight operations remained normal.
Shares rose as much as 4.5% to 42 rupees in early trade.
