Advance airline ticket bargain sales – how airlines may pay today’s bills

With its cash drying up, distressed budget airline SpiceJet has been meeting a large part of its working capital needs through a route termed as "mortgaging the future" where it sells a huge portion o

Advance airline ticket bargain sales – how airlines may pay today’s bills

With its cash drying up, distressed budget airline SpiceJet has been meeting a large part of its working capital needs through a route termed as “mortgaging the future” where it sells a huge portion of its seat inventory at steep discounts or abnormally-high commissions to travel agents and online portals for advance cash paid to it.

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The cash raised through this mode by the airline is being used to pay employee salaries and meet other cash commitments to keep the airline running, but this has raised an alarm in the industry as Vijay Mallya-owned Kingfisher Airline had resorted to a similar method to meet its cash needs just before it collapsed.

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