New Delhi: In an early morning Monday email to employees, cash-strapped budget airline SpiceJet Ltd has said it may have to shut down operations.
SpiceJet is an Indian low-cost airline owned by the Sun Group of India. It is the country’s second largest airline by domestic passenger share.
The airline was given time till Monday to release pending salaries of employees and a schedule on how it plans to pay vendor dues of about `1,600 crore by the Directorate General of Civil Aviation (DGCA).
“COO has a very crucial meeting with the ministry of civil aviation today. The meeting may effectively determine the future of our company,” said Sandeep Varma, senior vice-president and head of flight operations.
SpiceJet warns employees it may have to cease operations: SpiceJet was given time till Monday to release pending salaries of employees and a schedule on how it plans to pay vendor dues of about Rs1,600 crore by DGCA. Photo: Bloomberg © LiveMint SpiceJet was given time till Monday to release pending salaries of employees and a schedule on how it plans to pay vendor dues of about Rs1,600 crore by DGCA.
SpiceJet said in the mail to all the pilots, “If all goes well, then we can expect to continue operations smoothly and as planned.”
SpiceJet COO Sanjiv Kapoor will be meeting ministry and DGCA officials on Monday. To an email sent, Kapoor did not offer any comment immediately for the story.
“If for any reason, all does not go well, then you should expect the following. You will get a phone call from a senior management pilot from the head office (either from roster cell phone or landline). He will brief you in detail as to the situation and the necessary further action. Please do exactly as briefed,” Varma said adding, “Depending on the nature of the future action, we will stay in constant communication with you and support you. All SpiceJet staff will also be in communication and support of you at that time.”
The money-losing airline has cancelled over 1,800 flights in a month as it shrinks its fleet and shrunk from 58 aircraft to nearly 37. It has a 17% domestic market share.