Salary issues sorted; cases won’t work: SpiceJet CMD

The court cases filed by aircraft lessors to recover their dues don’t assist anybody very much and all such disputes eventually end in settlements, SpiceJet CMD Ajay Singh said recently.

SpiceJet employees are now being paid their full salaries on time and all issues related to their pays have been resolved, he said on the sidelines of 77th annual general meeting of International Air Transport Association. Delhi High Court last month restrained SpiceJet from transferring a part of its assets to a separate company after Goshawk, one of the airline’s aircraft lessors, filed a case to recover its pending dues of approximately $25 million.

SpiceJet, which reported a net loss of Rs 934.8 crore and Rs 998.3 crore in 2019-20 and 2020-21, respectively, entered into a settlement with CDB

Aviation and Avolon, two major lessors of Boeing 737 Max aircraft, during the August-September period this year. On September 3, a section of employees of SpiceJet went on a short strike at the Delhi airport over issues related to reduced salaries and their irregular disbursement.

Singh said it is a difficult time for every airline around the world and not just SpiceJet. “I think SpiceJet has done very well to stay afloat in this crisis. We have built a new cargo business. We are using that cargo business to reduce the parent’s liabilities, SpiceJet’s liabilities, by a significant amount,” he added.

On issues concerning salary payment, Singh said: “All salary issues have been resolved. Salaries are being paid on time and in full. You know, this issue, the media has been raising occasionally but every airline around the world has been challenged on this front.”