SpiceJet Faces Financial Stress, Delays Salaries and EPFO Deposits

SpiceJet, facing financial strain, has postponed salary and EPFO payments amidst reports of potential layoffs.

  • SpiceJet, facing financial strain, has postponed salary and EPFO payments amidst reports of potential layoffs.
  • The airline, led by Ajay Singh, may lay off 1,400 employees to reduce operational costs amid legal challenges.
  • SpiceJet aims to streamline operations, focusing on fleet upgrades and cost-cutting measures.

SpiceJet, grappling with financial turmoil, has deferred salary disbursements and EPFO deposits while contemplating layoffs to mitigate operational expenses. Amidst reports of impending staff reductions, the carrier’s chairman, Ajay Singh, underscores the necessity of prudent spending and operational efficiency. The airline, currently operating a fleet of over 30 aircraft, is evaluating measures to optimize its workforce and streamline operations to achieve annual savings potentially amounting to Rs 100 crore.

In a bid to alleviate financial strain and bolster its position, SpiceJet is exploring avenues for raising fresh capital and potential acquisitions. The airline’s efforts to secure funding have seen progress, with the receipt of the first tranche of proposed capital infusion. However, challenges persist, including delays in raising requisite funds and navigating the resolution process for Go First Airlines. Despite these challenges, SpiceJet remains committed to fortifying its financial resilience and pursuing growth opportunities in the aviation sector.