Cash crisis: SpiceJet puts 150 cabin crew on furlough for 3 months
Spicejet (Photo: Shutterstock)
Cash-strapped SpiceJet on Thursday announced it has temporarily put 150 cabin crew members on furlough for three months due to “lean travel season and reduced fleet size” and to ensure long-term stability of the airline.
The airline has been making losses for the last six years, and is now finding it difficult to pay employee salaries, sources said.
It is also entangled in legal battles over unpaid dues to aircraft lessors, engine lessors, lenders, and former promoter Kalanithi Maran.
The airline said, “SpiceJet has made the difficult decision to temporarily place 150 cabin crew members on furlough for three months. This step has been taken in response to the current lean travel season and the reduced fleet size, with the long-term stability of the organisation in mind.”
“We deeply value the contributions of our crew members. During this furlough period, they will continue to retain their status as employees of SpiceJet, with all health benefits and earned leave intact,” it added.
SpiceJet said it would welcome its cabin crew members back to active duty when it would enhance its fleet following the upcoming QIP.
Last month, SpiceJet initiated the process of raising Rs 3,000 crore through a qualified institutional placement (QIP), which is expected to be completed by the end of September.
In early 2024, the airline’s shareholders approved the issuance of equity and warrants to raise Rs 2,241 crore, of which just Rs 1,060 crore were raised.
The budget carrier last reported a profit in 2017-18, when it posted a consolidated net profit of Rs 557.4 crore.
First Published: Aug 29 2024 | 10:39 PM IST