SpiceJet announced a 20 per cent salary hike for pilots from October onwards. This follows last month's 6 per cent hike in salaries.
Sources said that while the first tranche of Emergency Credit Line Guarantee Scheme (ECLGS) payment has been received by the airline, the second is expected shortly.
Moreover, the company will be depositing TDS of all employees in the next two-three weeks. And, a significant portion of the PF will also be credited.
According to an internal mail to all the pilots, senior VP, Gurcharan Arora said that the Spicejet has received the approval for a loan under the government's ECLGS scheme. "The first tranche of the payment has already been received and the second trancher is expected very soon. Our management is working to raise an additional 200 million dollars."
The mail also talked about resumption of normalcy in the aviation sector and said that the airline is flying towards growth and sustainability.
On Tuesday, in a temporary measure to rationalise cost, SpiceJet decided to place some pilots on leave without pay for a period of three months. The airline said that it will be inducting MAX aircraft shortly and these pilots will be back in service as the induction begins. During the LWP period, pilots will remain eligible for all other employee benefits as applicable i.e. all opted insurance benefits and employee leave travel.
SpiceJet airline had earlier reported a net loss of Rs 789 crore (Rs 420 crore, excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of Rs 729 crore in the quarter ending 30 June, 2021 as the business was severely impacted by record high fuel prices and a depreciating Rupee.