SpiceJet's Financial Turbulence: Employee Salaries Delayed Amid Operational Challenges

Budget airline SpiceJet is facing financial challenges, leading to delayed salary payments for higher-level employees. Despite earlier commitments to expand its fleet, most planes remain grounded. SpiceJet's recent financial actions, including an interest-free advance to its Chairman, raise questions about its fiscal management.

SpiceJet, a budget airline, is experiencing financial turbulence, delaying salary payments to senior employees, sources reveal. While staff earning up to Rs 55,000 receive timely payments, higher-level employees face delays of 10-15 days.

According to its FY25 annual report, SpiceJet employs 6,484 staff, of which 4,894 are permanent. Recently, they provided an interest-free advance of Rs 32 crore to Chairman Ajay Singh, under board-approved policy, asserting it doesn't harm company interests.

Despite plans to expand its fleet, only 18 of SpiceJet's 53 planes are operational as reported in September. This financial strain comes after a reported Rs 238-crore net loss in the June quarter, raising questions on the company's management and sustainability.

(With inputs from agencies.)