SpiceJet places 150 cabin crew members on furlough for three months

Budget carrier SpiceJet that is currently facing financial headwinds, has decided to furlough 150 cabin crew members for three months. Meanwhile, aviation regulator Directorate General of Civil Aviation (DGCA) has put the airline under enhanced surveillance. 

Furlough involves temporarily ceasing the paid employment of workers due to the company’s financial constraints. In SpiceJet’s case, the airline would send 150 cabin crew members on leave without pay for three months. 

The budget carrier is already operating on a reduced number of planes owing to its financial and legal woes. It is currently operating a fleet of 22 aircraft.  

"SpiceJet has made the difficult decision to temporarily place 150 cabin crew members on furlough for three months. This step has been taken in response to the current lean travel season and the reduced fleet size, with the long-term stability of the organisation in mind," the company spokesperson said in a statement.

During this furlough period, the spokesperson said the employees will continue to retain their status as employees of SpiceJet, including all health benefits and earned leave intact.

Meanwhile, shares of SpiceJet climbed 6.38 per cent to settle at Rs 66.23 on Thursday. With this, the scrip is up 15 per cent in the past month and a solid 109 per cent in the past year. 

SpiceJet recently reported a 26 per cent rise in sequential net profit at Rs 150 crore for the June quarter compared with Rs 119 crore in the March quarter. In a move to strengthen its financial position and support its growth plans, SpiceJet has initiated the process of raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), which is expected to be completed by the end of September 2024.

"As we work toward enhancing our fleet following the upcoming qualified institutional placement (QIP), we look forward to welcoming our crew members back to active duty," the spokesperson said.