SpiceJet Clears Salary Dues Worth Rs 120 Crore
SpiceJet had been delaying salary payments due to a liquidity crunch.
Low-cost carrier SpiceJet Ltd. has cleared salary dues totalling Rs 120 crore for its employees over the past four months, the airline told NDTV Profit in an emailed statement.
The airline had settled outstanding wages for July, August, and the remaining June salaries for partially paid employees, PTI had reported citing sources, on Sept. 26. The airline had cleared salary dues up to August 2024.
SpiceJet had been delaying salary payments due to a liquidity crunch. However, after raising Rs 3,000 crore through a qualified institutional placement, the airline began settling pending dues. The QIP attracted interest from marquee investors like Societe Generale-ODI, Goldman Sachs (Singapore) Pte-ODI, Nomura Singapore Ltd. ODI, and Discovery Global Opportunity (Mauritius).
In addition to clearing salaries, SpiceJet also resolved a financial dispute with Engine Lease Finance Corp. regarding a $16.7 million (approximately Rs 140 crore) claim. The amicable settlement, announced on Sept. 24, will lead to the withdrawal of all ongoing litigation.
“We are pleased to have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate. This agreement not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion,” said Ajay Singh, chairman and managing director of SpiceJet.
NDTV Profit previously reported that the airline's statutory dues, dating back to 2010, have risen to Rs 794 crore, including Rs 135.5 crore in unpaid provident fund contributions.
Amid ongoing financial challenges and the global grounding of Boeing 737 MAX aircraft, SpiceJet's fleet has decreased from 74 aircraft in 2019 to 28 in 2024. However, in a recent interview with NDTV Profit, Ajay Singh confirmed that the airline is fully funded to expand its operational fleet to 100 aircraft by the end of 2026.
