The Airports Authority of India (AAI) has asked GoAir to pay unpaid dues to the tune of ₹50 crore or be ready to be put on cash-and-carry mode.

An AAI official requesting anonymity told BusinessLine that a notice has been sent to GoAir earlier this week. “Go Air dues as on July 28 is ₹60.75 crore, including an interest of ₹10 crore. AAI has issued a notice stating that it will be put on cash-and-carry mode.”

Usually, airlines are allowed to utilise the airports on credit for a few months unless the track record of the airline is clear. If the airline fails to pay the dues to the AAI, it is put on cash-and-carry mode, which means, that the airline will have to pay upfront to utilise the services of the airports.

GoAir is yet to respond to an email query sent by BusinessLine .

The source said that Wadia Group-owned GoAir’s dues have been pending for at least four-five months, the source said. “We are awaiting a response from GoAir regarding the payments else, we will encash the bank guarantees worth ₹82.05 crore,” the person added.

Last week, another no-frills carrier SpiceJet was put on cash-and-carry mode, but later reversed the order the airline assured a payment plan and timely payments.

GoAir, like SpiceJet, is severely hit due to the Covid-19 pandemic, government regulations, and the muted passenger demand.

BusinessLine had reported that GoAir was mulling the retirement of 12 of its A320 CEOs earlier than scheduled as part of its cost-cutting measure to deal with subdued air travel. However, the lessors of at least seven of these aircraft are resisting the move, and have demanded a balloon payment on lease rentals for the remaining period.

Currently, GoAir is operating only 15-18 aircraft in total out of its entire fleet of 55 aircraft.