INSUBCONTINENT EXCLUSIVE:
Spicejet(Photo: Shutterstock)4 min read Last Updated : Sep 26 2024 | 4:17 PM IST
Low-cost carrier SpiceJet has cleared all pending salary
The airline, which had raised Rs 3,000 crore through a qualified institutional placement (QIP) earlier this week, disbursed salaries for
July and August, as well as those pending for June, on Wednesday, reported The Economic Times citing sources.
This move comes after the
QIP, which was oversubscribed, attracted participation from 87 Indian and international institutions
Alongside the Rs 3,000 crore raised, the airline is set to receive an additional Rs 736 crore from a previous funding round, strengthening
continued to shrink, according to data from the Directorate General of Civil Aviation (DGCA)
In January 2023, the airline held a 5.6 per cent market share, but by August, it had dropped to 2.3 per cent, marking a significant decline
resulting in defaults on lease payments for its aircraft
Several lessors have taken the airline to insolvency court over unpaid dues
liabilities, as well as Rs 650 crore in unpaid statutory dues
Rising working capital costs, fixed rental expenses at airports, and escalating operational costs have further burdened the airline.Recent
Last month, the airline was forced to operate empty flights from Dubai after passengers were unable to check in
Several flights had also been cancelled for similar reasons earlier in the month
These incidents prompted the DGCA to place SpiceJet under enhanced surveillance at the end of August.
The airline also temporarily
furloughed 150 cabin crew members for three months due to the lean travel season and has delayed salary payments, along with defaulting on
largest lessors, Carlyle, agreed to convert up to $50 million of dues into equity
The deal also includes the restructuring of aircraft lease obligations totalling $137.68 million, which will be reduced to $97.51 million
convertible debentures.
Looking ahead, the airline plans to expand its fleet to 40 aircraft by March 2025, matching the size of rival
Akasa Air, with a further 40 aircraft to be added the following year
During high-demand periods, the airline intends to lease additional planes on a short-term wet lease basis, according to chairman and
managing director Ajay Singh
where we held more than 50 per cent of seat capacity and 40 routes where SpiceJet had a monopoly
