Cash-strapped budget airline SpiceJet to lay off 1,400 employees
Cash-strapped budget airline SpiceJet to lay off 1,400 employees
SpiceJet has been delaying salary payments for several months. Many haven’t yet got their January pay.
Cash-strapped budget airline SpiceJet is to lay off 1,400 employees, nearly 15% of its workforce, to cut costs and retain investor interest.
The airline currently has 9,000 employees and operates about 30 planes. Of these, eight are wet-leased from foreign carriers, along with crew and pilots.
As per a spokesperson, this is to ensure an alignment companywide costs as against operational requirements.
One of the staff members said they have already started getting calls referring to the terminations. SpiceJet has been delaying salary payments for several months.
Many haven’t yet got their January pay.
SpiceJet has said it’s in the process of getting a fund infusion of ₹2,200 crore but some investors are said to have developed cold feet.
Spokesperson further added that there aren’t any funding delays and they are progressing well with their fund infusion and have already made their public announcements accordingly.
That they will be making additional announcements as they progress on the next tranche. The majority number of investors have subscribed.
In 2019, at its peak, SpiceJet had a fleet of 118 planes and 16,000 employees. Its nearest rival in terms of market share is Akasa Air, which has 3,500 employees for a fleet of 23 planes. They have nearly 4% share each of the domestic market.
News Edit K.V.Raman
