BENGALURU (Reuters) -Indian low-cost carrier SpiceJet Ltd said on Tuesday it had cleared all its outstanding principal dues with the state-run airport operator Airports Authority of India (AAI), sending its shares up nearly 5%.
The airline will revert to advance payment mechanism for its daily operations, and AAI will release a 500 million rupees ($6.33 million) bank guarantee, the company added.
The airline has been under the spotlight lately after a slew of incidents of technical snags on its flights and one of its Dubai-based lessors asked the regulator to deregister three of SpiceJet's planes.
Adding to its woes, the aviation regulator last week 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.
($1 = 78.9525 Indian rupees)
(Reporting by Tanvi Mehta and Meenakshi Maidas in Bengaluru; Editing by Rashmi Aich)