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SpiceJet financial crisis: Crisis-hit budget carrier SpiceJet on Thursday announced that it will be placing 150 cabin crew members on furlough for a period of three months. This move has been taken in response to the current low travel season and reduced fleet size, keeping in mind the long-term sustainability of the organisation.
The budget carrier SpiceJet is currently operating with a significantly reduced fleet of around 22 aircraft due to ongoing financial difficulties, legal challenges, and issues with lessors. These challenges have contributed to the airline’s decision to reduce its workforce temporarily.
150 cabin crew to be sent on leave without pay
An airline spokesperson said that a total of 150 cabin crew members will be sent on leave without pay for three months. “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,” the spokesperson said in a statement.
“We deeply value the contributions of our crew members. During this furlough period, they will continue to retain their status as SpiceJet employees with all health benefits and accrued leave,” the spokesperson said.
“As we work toward enhancing our fleet following the upcoming Qualified Institutional Placement (QIP), we look forward to welcoming our crew members back to active duty. We are committed to supporting our employees during this period,” the spokesperson added.
DGCA places SpiceJet under enhanced surveillance
Earlier in the day, aviation regulator DGCA decided to place crisis-hit SpiceJet under enhanced surveillance that will entail increased spot checks and night surveillance to ensure the safety of the airline’s operations.
This decision comes in response to reports of flight cancellations and financial difficulties faced by the airline. The DGCA conducted a special audit of SpiceJet’s engineering facilities on August 7 and 8, during which certain deficiencies were identified.
“In light of the past record and the special audit carried out in August 2024, SpiceJet has once again been placed under enhanced surveillance with immediate effect. This would entail an increase in the number of spot checks/ night surveillance with a view to ensure the safety of operations,” the Directorate General of Civil Aviation said in a release.
(Input: Anamika Gaur)
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