SpiceJet delays June salaries due to 'pressing operational financial commitments'
SpiceJet, a beleaguered Indian airline, has postponed the payment of June salaries for some of its employees. The Economic Times reported today that this delay is due to "pressing operational financial commitments." Virendra Malhotra, Vice President for Flight Operations at SpiceJet, informed pilots via email about this unexpected delay and assured them that their salaries would be "disbursed shortly."
Airline seeks bridge funding amid financial challenges
In the midst of these financial challenges, SpiceJet is actively seeking "decent bridge funding." The airline has expressed gratitude toward its employees for their understanding and cooperation during this difficult time. This development follows a previous report by CNBC-TV18 revealing that SpiceJet had not deposited employees' provident fund for over two and half years, with the last deposit made in January 2022 for 11,581 employees.
Delhi HC questions SpiceJet over potential grounding
The Delhi High Court has raised questions about SpiceJet's potential grounding due to non-payment. The court demanded a detailed response from the airline regarding the personal liability of its directors in this matter. This legal scrutiny comes as part of the ongoing examination of SpiceJet's financial difficulties.
Board approves raising ₹3,000 crore
In response to its financial struggles, SpiceJet's board has approved a plan to raise up to ₹3,000 crore through qualified institutional placement (QIP) in July. This decision was preceded by an announcement from Chairman Ajay Singh at the CAPA India Aviation Summit in June. Singh stated his intention to raise $250 million by August with the aim of "cleaning up its balance sheets" over the next two quarters.
SpiceJet bounces back to profitability
Despite facing financial hurdles, SpiceJet has managed to return to profitability in the fourth quarter of 2023-24. This comes after reporting losses in the second and third quarter of the same fiscal year. The Gurugram-based airline reported a net loss of ₹300 crore for the September quarter but bounced back with a net profit of ₹119.6 crore for the January-March quarter.
