SpiceJet clears pending July, August salaries of employees: Official
Salaries of July and August of all employees and those who hadn’t received June salaries were disbursed on Wednesday evening
Domestic airline and low-cost carrier SpiceJet, cleared the pending salaries of employees for both July and August on Wednesday evening, an airline official said.
“Salaries of July and August of all employees and those who hadn’t received June salaries were disbursed on Wednesday evening”, the official said.
“However, employees sent on furlough continue to remain,” a second official said.
A SpiceJet spokesperson confirmed the development but did not provide more details on the same.
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Owing to liquidity crisis, the airline had postponed salary payments to its employees and staff.
The development comes a week after the airline secured a fresh capital infusion of ₹3,000 crore from investors.
On September 23, SpiceJet had announced raising ₹3,000 crore through Qualified Institutional Placement (QIP) and an additional ₹736 crore from the previous funding round, further boosting its financial stability and growth plans.
According to Planespotters, an aviation website which tracks fleet details; the airline has a fleet size of 55 of which 37 aircraft are on ground (AOG) while 18 are currently operating.
SpiceJet also needs to get its over 30 grounded aircraft back to operations.
“SpiceJet is the only airline in Indian aviation history to be in and out of bankruptcy nearly six times. Ajay Singh offloading his own stake in the airline signals a greater danger for SpiceJet, a promoter exiting, gradually. SpiceJet needs to take drastic steps to win back lessors and banks before it can get anyone on the table to sign up for a leasing contract,” Mark Martin, chief executive officer of aviation firm Martin Consulting, said.
“India needs a strong, stable SpiceJet because our consumer needs choices and the market needs competition,” he concluded.
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