SpiceJet delays salaries for senior employees
What's the story
Budget airline SpiceJet has delayed salary payments to a large section of its employees. According to PTI, while junior staff earning up to ₹55,000 per month received their August salaries on time, senior employees at the Assistant Manager level and above are facing delays of 10-15 days. This payment strategy impacts a large chunk of the airline's workforce, comprising 6,484 employees, including 4,894 permanent staff members.
Official statement
Airline follows phased disbursement schedule during lean periods
Explaining the reason behind the delay, a SpiceJet spokesperson told IANS that the airline follows a phased disbursement schedule for salaries during lean periods, similar to practices in other sectors. "Our employees are well aware of this schedule, which has been a consistent practice, and there has been no change or deviation from it," the spokesperson said. The airline's decision comes after it reported a net loss of ₹238 crore in the June quarter this year.
Financial overview
Only 18 out of 53 aircraft operational
Despite having a fleet of 53 aircraft, only 18 were operational as of September 13, according to Planespotter.com. The airline had previously announced plans to expand its fleet thrice last year by at least 10 planes each time. In July last year, SpiceJet operated with 18 aircraft while 38 were grounded out of a total fleet of 56.
Funding utilization
SpiceJet raised ₹3,000 crore through QIP last September
Last September, SpiceJet had raised ₹3,000 crore through a Qualified Institutional Placement (QIP), promising to use the funds to operationalize grounded aircraft, acquire new planes and invest in technology. "The...capital raised will be instrumental in ungrounding SpiceJet's fleet, acquiring new aircraft, investing in technology and expanding into new markets. SpiceJet aims to restore its reputation for efficiency and reliability, ensuring passengers have access to improved connectivity...and travel options," it had said. However, progress appears slow, with many aircraft still grounded.