Fly the world, pay as you go

Flyers on SpiceJet can now pay for tickets in three, six or 12 instalments with

no interest levied for the three month plan.

9 November 2021

SpiceJet on Monday announced a Fly Now Pay Later scheme in partnership with fintech company Capital Float to enable customers to pay for their tickets in instalments.

• Customers can choose between 3,6,12 month options of which the 3 month options attracts no interest on the ticket fare.

• To avail themselves of the EMI scheme, passengers need to provide basic details such as PAN, Aadhar number or VID and verify it with a one-time password. Customers will have to pay the first EMI by providing their UPI ID and subsequent EMIs would be deducted from the same UPI ID.

• Passengers do not have to provide any credit or debit card details to avail themselves of the EMI scheme.

Turbulent times for SpiceJet

This move comes in the wake of a host of problems staring at SpiceJet including large amounts of outstanding tax dues.

• SpiceJet failed to pay GST dues worth ₹285 crore while its cash reserves stand at ₹320 crore.

• Due to non-payment of tax dues, the tax authorities have refused to grant a ‘no objection certificate’ to SpiceJet to give back 13 Boeing 737 aircraft to its lessors, further enhancing the cash liquidity issue.

• As with the common man , rising aviation fuel costs having doubled in the past 12 months have caused issues as 40% of the airline's operating costs is being spent on fuel.

• Being the only carrier to have the infamous Boeing 737 Max in its fleet, it is yet to receive a substantial part of the compensation due from Boeing after the aircraft grounded the airline in March 2019

The Road Ahead

Earlier this year, SpiceJet confirmed that it has received shareholder approval to raise up to ₹2,500 crore via a qualified institutional placement of eligible securities, either bonds or other instruments.

It is also expected to earn ₹2500 crores after offloading its cargo business to its subsidiary, SpiceXpress.