Low- cost airline SpiceJet on Tuesday said it has asked some pilots to go on three months’ leave without pay, as a temporary measure to cut costs. According to reports, the number of pilots that the carrier sent on leave is 80.
The company said there would be a sufficient number of pilots to operate its full schedule as and when the DGCA restriction on flights is lifted.
SpiceJet said the measure was in line with its policy not to retrench employees and would help rationalise the pilot strength vis-à-vis the aircraft fleet.
In 2019, SpiceJet had inducted more than 30 aircraft once the 737 Max was grounded. While the airline had continued with its planned induction of pilots, the prolonged grounding of the Max fleet resulted in an excess of pilots.
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SpiceJet’s market share in the domestic market in August was 8.6%.
The company explained the pilots would be called back for service when the Max aircraft start flying. In the meantime, the pilots will be eligible for all other employee benefits as applicable, including opted insurance benefits and employee leave travel.
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SpiceJet reported losses of Rs 1,721.9 crore for FY22 and Rs 789 crore in the June quarter taking its accumulated losses to Rs 6,747.11 crore at the end of June. The airline’s current liabilities exceed its current assets by Rs 6,771.9 crore, auditors have noted. Promoter Ajay Singh is understood to be in discussions to sell a stake in the company. Singh holds a fairly large stake of close to 60% in the airline.