The employees of the aviation company SpiceJet will be greatly relieved during the festive season. The troubled company has arranged the money and will now fly again. The company is starting by paying the employees’ pending money.
SpiceJet has been in crisis for a long time. The company’s crisis started 5-6 years ago, but it has stood in front of it like a mountain in recent months. Due to that, the company reached the verge of closure. The company was unable to pay its employees salaries.
SpiceJet Gets 3 Thousand Crores
However, SpiceJet’s problems are going to be resolved. The company has received a fund of Rs 3 thousand crores from investors, including mutual funds. Now, the company wants to revive itself using this money. Under the revival plan, the company has set a target of preparing a fleet of at least 100 aircraft by the end of 2026.
All Dues Will Be Cleared By Next Month
A Times of India report quoted the company’s CMD Ajay Singh saying all employees’ dues will be paid by the end of next month. He said a target has been set to clear all the employees’ dues, including salary and PF, by the end of October. In addition, the company plans to bring 30 grounded aircraft back into operation, improve on-time performance, pay legislative dues, and increase the number of flights.
TDS-PF Payment Not Made For 2 Years
SpiceJet first faced trouble due to the grounding of 737 Max aircraft in March 2019. After that, in 2020, Covid increased the problems further. The company’s crisis had risen so much that the dues were increasing. The company could not pay even the TDS and PF of its employees for more than two years. On the other hand, SpiceJet was facing lawsuits with lessors (those who provide aircraft on lease) regarding payment of dues.
