Having initially ordered SpiceJet (SG, Delhi Int'l) to pay cash up front for all airport services, the Airports Authority of India (AAI) has now decided to defer the order and allow the airline to continue operating and paying on normal terms, the IANS news agency has reported.

The AAI initially ordered SpiceJet to pay COD from July 30 due to the carrier's debt exceeding INR1.75 billion rupees (USD23.3 million). In response, SpiceJet presented a new repayment plan seeking to avoid the cash settlement obligation, to which the AAI concurred.

"AAI deferred its decision to put SpiceJet on cash and carry. We continue to have normal operations at all AAI-run airports as before without any impediments," the airline said in a statement.

In early July, the AAI put Air India (AI, Mumbai Int'l) on similar notice, albeit on a geographically limited basis affecting operations at Ahmedabad, Bhubaneswar, Kolkata Int'l, and Chennai alone. That order was also promptly deferred after the flag carrier repaid some of its debt.

State-owned AAI manages 123 Indian airports, including all of the country's major gateways.