SpiceJet is signalling its intent to regain a stronger position in the competitive aviation market with plans to introduce new aircraft, expand its routes, and restore its network.
Debt-ridden domestic airline SpiceJet, which recently raised ₹3,000 crore, on Friday, October 4, said it had cleared all pending salaries of its employees and goods and services tax (GST) payments and also deposited ten months' worth of provident fund (PF) dues.
An airline spokesperson said that within the first week of raising fresh funds, it had cleared all pending salaries and GST dues and made significant progress by depositing ten months' PF dues. The process of clearing other outstanding dues is ongoing, the spokesperson said in a statement. Among other efforts, the airline has settled with various aircraft lessors.
To be sure, SpiceJet had cleared all pending salaries a week ago, much to the relief of its workforce, ahead of the festive season. Along with employee dues, the airline has cleared outstanding GST payments, signalling a broader effort to rectify its financial standing.
SpiceJet on recovery
Employees are now relieved, re-energised, and ready to resume their roles with optimism, hoping to see the airline reclaim its foothold in the sector. "I am still in shock! Getting four months' salary in the last five days was unexpected. It's like Diwali came early!" said Vishnu Prasad, an executive at the reservations department.
"I was worried about my family's future. I am so happy that the management has kept its word. We were promised all dues would be cleared by September 30, but they had already done it. I am proud to be part of this team!" Manish Kumar, a security staff told news agency ANI.
An airport staff member, Deepak Singh, who was still processing the sudden shift, told ANI, "I honestly couldn't believe it when I saw my account. Three months of salary paid in one go and then getting my September salary on time, it's a huge relief."
With plans to introduce new aircraft, expand its routes, and restore its network, SpiceJet is signalling its intent to regain a stronger position in the competitive aviation market. These developments occurred after the airline raised ₹3,000 crore through a Qualified Institutional Placement (QIP).
On September 23, the airline announced it would raise funds through a QIP of shares. The QIP attracted diverse top-tier institutional investors and funds, including marquee names such as Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.
For several months, SpiceJet has been grappling with multiple headwinds, including financial problems and legal woes. It also operates with a reduced fleet. On Friday, shares of SpiceJet settled 4.25 per cent lower at ₹62.79 apiece on the BSE.