Facing turbulent times, SpiceJet has temporarily furloughed 150 cabin crew members for three months, citing a lean travel season and a reduced fleet size. This move, intended to secure long-term stability, comes amidst the airline’s ongoing struggles with prolonged losses, unpaid dues to lessors, and legal battles. Despite these challenges, SpiceJet assures that affected employees will maintain their health benefits and earned leave. The budget carrier, which last reported a profit in 2017-18, hopes to welcome the crew back following its upcoming fleet expansion, bolstered by a Rs 3,000 crore fundraising effort expected to complete by September.

Struggling with a severe cash crunch, budget airline SpiceJet has decided to furlough 150 of its cabin crew for three months. This latest move highlights the financial challenges the company faces. Find out how this decision impacts employees and the airline’s operations in our detailed report.

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Spicejet (Photo: Shutterstock)

Cash-strapped SpiceJet has announced on Thursday that it will temporarily furlough 150 cabin crew members for a period of three months. This decision comes in light of the current lean travel season and the airline’s reduced fleet size, as the company strives for long-term stability.

The airline, which has been incurring losses over the past six years, is facing financial difficulties including challenges in meeting employee salary obligations. Additionally, SpiceJet is embroiled in various legal disputes involving unpaid dues to aircraft and engine lessors, lenders, and former promoter Kalanithi Maran.

“SpiceJet has made the difficult decision to temporarily place 150 cabin crew members on furlough for three months. This step has been taken in response to the current lean travel season and the reduced fleet size, with the long-term stability of the organisation in mind,” the airline stated.

The company reassured that during the furlough period, the affected crew members will remain employees of SpiceJet, retaining all health benefits and earned leave. SpiceJet also indicated that it would welcome its cabin crew members back when it enhances its fleet following the upcoming Qualified Institutional Placement (QIP).

In July, SpiceJet began the process of raising Rs 3,000 crore through a QIP, which is anticipated to conclude by the end of September. Earlier this year, shareholders approved a plan to issue equity and warrants to raise Rs 2,241 crore, though only Rs 1,060 crore had been raised.

The budget carrier last recorded a profit in the 2017-18 fiscal year, with a consolidated net profit of Rs 557.4 crore.

Sure, here are five FAQs in simple spoken English for the news about SpiceJet’s cash crisis and furloughing 150 cabin crew members:

1. Why did SpiceJet put 150 cabin crew on furlough?
SpiceJet is facing financial difficulties, so they decided to put 150 cabin crew members on furlough to save money.

2. How long will the furlough last?
The furlough will last for three months.

3. Will the furloughed employees get paid during this time?
No, usually when employees are on furlough they do not get paid, but it’s best to check with the company for specific details.

4. Are other SpiceJet employees affected?
Right now, the news is only about the 150 cabin crew members. There’s no word if other staff will also be put on furlough.

5. Can the furloughed employees return to work after three months?
Yes, furloughed employees are usually expected to return to work when the furlough period ends, assuming the company’s situation has improved.