In The Doldrums, SpiceJet To Lay Off 1400 Employees To Cut Costs
The airline had reportedly been struggling to pay it's employees on a timely basis.
Representative Image | File
Cash-strapped airlines, SpiceJet will lay off around 1400 employees. The Ajay Singh owned company's decision will result in loss of jobs of nearly 15 per cent of it's existing workforce. This move is said to be aimed at cutting costs and to retain investor interest in a company, that has been struggling for over a year now.
The airline had reportedly been struggling to pay it's employees on a timely basis, and people familiar with matter pointed specifically towards SpiceJet's salary bill of ₹60 crore as the reason behind the recent decision.
In Troubled Waters
In 2023, the National Company Law Tribunal (NCLT) told the low-cost airline and its aircraft lessors, Aircastle and Wilmington, to study the impact of the government's notification, removing aviation lease agreements from the moratorium under the Insolvency and Bankruptcy Code (IBC). triggering much concern.
In the same year, the company also attracted undesired attention, when Credit Suisse alleged that the financially pinched airline has not followed a court-approved settlement plan for paying its outstanding dues. In a separate legal dispute, SpiceJet is embroiled in a case with the former owner of the airline, Sun Group's Kalanithi Maran and his family, wherein, the Delhi High Court asked SpiceJet to pay Kalanithi Maran Rs 100 crore.
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