“This step has been taken in response to the present lean journey season and the decreased fleet measurement, with the long-term stability of the group in thoughts,” a spokesperson stated in a press release late Thursday.
SpiceJet stated final month that it’s in search of to lift as a lot as ₹30 billion ($358 million) through a share sale however hasn’t introduced any timeframe. The beleagured provider reported a 27 per cent drop in internet earnings for the primary quarter to ₹1.5 billion whereas income sunk 15 per cent year-on-year.
The workers furlough comes after India’s aviation regulator the Director Common of Civil Aviation positioned SpiceJet beneath enhanced surveillance to make sure that its poor monetary well being doesn’t affect security, The Hindu reported, citing a senior DGCA official.
SpiceJet stated in its assertion that crew members will proceed to retain their standing as workers. The funds airline continues to be flying however its market share in July fell to simply 3.1 per cent. It used to command round 15% of the market simply previous to Covid in 2020.
The airline’s auditors have additionally raised considerations over SpiceJet’s non-compliance with varied rules, together with delays in tax funds, and overdue overseas forex commerce receivables and payables.
SpiceJet hasn’t made obligatory workers social safety Provident Fund funds since January 2022 in one other signal of its money crunch, CNBC-TV18 reported in July.
SpiceJet operates a fleet of principally Boeing Co.’s 737 jets, lots of that are grounded because it’s struggled to pay lessors. It had a fleet of 110 earlier than the pandemic, in response to its annual report, though now solely round 20 are flying.
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