SpiceJet, the Indian low-cost airline, is taking significant strides toward financial recovery and operational growth. Following a successful raise of ₹3000 crore through a Qualified Institutional Placement (QIP), the airline has addressed outstanding salary dues for its employees from June, July, and August. The total pending salary, amounting to ₹80 crore, has been cleared, signaling a positive shift in the company’s financial management.
While the clearing of salary dues marks an important milestone, SpiceJet still faces challenges with outstanding Provident Fund (PF) and Tax Deducted at Source (TDS) obligations. The airline has ₹220 crore in TDS dues pending from April 2020 to August 2023, alongside PF dues totaling ₹135 crore. Resolving these financial obligations is essential for maintaining employee trust and morale, particularly as the airline looks to rebound from previous difficulties.
The recent QIP saw strong participation from several prominent family offices and institutional investors, including Madhu Kela, Akash Bhanshali, and Goldman Sachs. The successful fundraising effort underscores investor confidence in SpiceJet’s potential for recovery and growth. In addition to the ₹3000 crore raised, the airline is set to receive an additional ₹730 crore from previous funding rounds, enhancing its financial capabilities.
Looking ahead, SpiceJet has ambitious plans for expansion. Currently operating a fleet of 28 aircraft, the airline aims to grow its fleet size to 100 over the next two years. Ajay Singh, the Chairman and Managing Director of SpiceJet, revealed that the company plans to unground existing aircraft and reach a target of 40 operational planes by the end of the financial year 2025. The goal is to double that figure to 80 aircraft by the end of financial year 2026.
This planned expansion includes a target of 5000 weekly flights, significantly boosting SpiceJet’s market presence and service offerings. The airline’s growth strategy reflects a commitment to enhancing operational capacity and meeting the increasing demand for air travel in India.
In an exclusive interview with CNBC-TV18, Singh expressed confidence in settling all outstanding employee dues, including PF and TDS, within the current calendar year. This commitment to resolving financial obligations is crucial for ensuring a motivated and engaged workforce, which is vital for the airline’s long-term success.
As SpiceJet works to solidify its recovery and expand its operations, the aviation industry will closely monitor these developments. The airline’s proactive measures in addressing financial obligations and its ambitious growth plans could position it for a strong resurgence in the competitive Indian aviation market.
