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SpiceJet, a budget carrier facing significant financial headwinds, has announced the furlough of 150 cabin crew members for a period of three months. This decision comes as the airline grapples with a shrinking fleet, legal challenges, and mounting financial pressures. Currently, SpiceJet operates a fleet of approximately 22 aircraft, a substantial reduction from its previous capacity. The furlough, implemented without pay, is attributed to the lean travel season and the airline's ongoing efforts to stabilize its financial position.
The airline spokesperson emphasized that the furlough is a temporary measure aimed at preserving the long-term stability of the organization. Despite the leave, the affected crew members will retain their employee status with SpiceJet, including access to health benefits and accumulated leave. This move underscores the airline's commitment to its workforce while navigating this turbulent period.
SpiceJet is actively seeking funds to bolster its financial standing and address its current challenges. The airline is pursuing a Qualified Institutional Placement (QIP) to raise capital, which it believes will allow for fleet expansion and ultimately enable the return of furloughed crew members to active duty. The QIP represents a critical step in the airline's recovery strategy, aiming to restore its financial health and ensure its continued operations.
Source: SpiceJet Sends 150 Cabin Crew On Leave Without Pay Amid Financial Crisis