Low on funds Due to a "lean travel season and reduced fleet size," SpiceJet stated on Thursday that it has placed 150 members of its cabin crew on furlough for a period of three months in order to preserve the airline's long-term stability. According to insiders, the airline has been losing money for the past six years and is currently having trouble paying employee salaries.
Legal disputes about outstanding debts to lenders, engine and aircraft lessors, and erstwhile promoter Kalanithi Maran are also involved. "SpiceJet has made the difficult decision to temporarily place 150 cabin crew members on furlough for a period of three months," the airline stated. This action has been made with the organization's long-term viability in mind, in reaction to the present slow travel season and the smaller fleet size.
"We are incredibly appreciative of our crew members' contributions. They will continue to be treated as SpiceJet workers throughout this shutdown, with full access to all paid time off and health benefits," the statement continued. SpiceJet announced that when it upgraded its fleet after the impending QIP, it would welcome its cabin crew members back to active duty.
SpiceJet started the qualified institutional placement (QIP) process last month with the goal of generating Rs 3,000 crore. The QIP is scheduled to be finished by the end of September.
The airline's shareholders approved the issue of warrants and shares in early 2024 with the goal of raising Rs 2,241 crore; however, only Rs 1,060 crore were raised. The low-cost carrier's most recent financial report showed a combined net profit of Rs 557.4 crore for the 2017–18 fiscal year.
