SpiceJet Puts 150 Cabin Crew on Three-Month Furlough Amid Financial Turmoil
Regulatory scrutiny increases as the airline faces flight cancellations and delayed payments.
SpiceJet has placed 150 cabin crew members on a temporary three-month furlough amidst reports of financial crisis at the airline. The troubled airline attributed this decision to the lean travel season and a reduced fleet size, with the aim of ensuring long-term stability, according to an official spokesperson.
The furlough reports followed regulatory scrutiny of SpiceJet after flight cancellations and operational deficiencies were identified. The Directorate General of Civil Aviation has since announced increased spot checks and night surveillance on the airline to ensure safety. SpiceJet has been under the DGCA's scrutiny since 2022 due to ongoing issues.
Despite these challenges, SpiceJet remains optimistic about the future. "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," the airline spokesperson said.
SpiceJet had approved a plan in July to raise up to Rs 3,000 crore through QIP, subject to shareholder approval and regulatory clearances, as part of its efforts to strengthen its financial position.
During the furlough period, affected cabin crew will retain their status as employees, with all health benefits and earned leave intact, according to the airline's spokesperson.
On Thursday, passengers of SpiceJet were barred from boarding a flight at Dubai airport due to the airline's failure to settle outstanding dues, according to sources cited by NDTV Profit. The carrier attributed the cancellations to "operational reasons."
This was the second incident in August, with Mumbai's Chhatrapati Shivaji Maharaj International Airport previously issuing an advisory warning of potential flight disruptions for SpiceJet passengers. The advisory was later withdrawn after a minor financial issue was resolved.
NDTV Profit also reported delays in staff salary payments at SpiceJet, citing sources. In response to the ongoing crisis, the DGCA placed the airline under enhanced surveillance to monitor the safety of its operations closely.
