SpiceJet has asked 150 members of its cabin crew to go on leave without pay (LWP) for three months, as a measure to deal with its present financial crisis and lessor issues. The carrier is also operating lesser number of aircraft, that is, only about 22 planes. During the furlough period, these employees will continue to receive health benefits and their earned leave will not be affected in any way.
The airline has reportedly assured that the once the fleet has been enhanced post the planned qualified institutional placement or QIP, the cabin crew members will be able to resume duty.
According to the Directorate General of Civial Aviation (DGCA), SpiceJet, which is looking to raise funds to improve its financial conditions, is being closely monitored and surveilled. This isn’t the first time SpiceJet is being placed under surveillance. Two years ago too it was being surveilled with DGCA limiting the number of flights in the post-COVID era.
Earlier this month, some special audits revealed that the airline was lagging in certain areas. Also, there were reports in the media of the airline’s passengers not being permitted to check-in at the Dubai airport as SpiceJet had pending airport dues.
That is not all, employees have not been paid salaries on time and it is reported that the airline has not been depositing the provident fund contributions either. On the legal front, there is already a case going on with the airline not paying its lessors.
For the March to October period, SpiceJet was reportedly given approval for over 1600 domestic flights per week. However, as per data for July, the airline has flown only about 703 domestic flights per week. These are not very encouraging numbers.
