SpiceJet clears salaries pending since 3 months; airline to settle PF, TDS dues next

SpiceJet on a positive note, has cleared the pending salaries of its staff for the months of June, July and August 2024, just ahead of Diwali. According to sources, the airline had about Rs 80 crore in pending salary dues. 

This development comes on the backdrop of SpiceJet raising Rs 3000 crore through Qualified Institutional Placement (QIP). 

Employees are eagerly waiting for the airline to clear their PFs and TDS that are pending since past two years. SpiceJet has a pending amount of Rs 220 crore in TDS and Rs 135 crore in PF that are pending from August 2020 to 2023. 

Interestingly, the airline is expected to receive another Rs 730 crore from the previous funding round. Some of the names that brought SpiceJet back from the edge of doom are Madhu Kela, Akash Bhanshali, Sanjay Dangi, Rohit Kothari, and FIIs and DIIs.

The DIIs and FIIs included Discovery Fund, Plutus, Jupiter Fund Management, Think Investments, Tata Mutual Fund, Bandhan Bank, Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore, Tata Mutual Fund, Discovery Global Opportunity Ltd, Societe Generale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund.

Meanwhile, the airline has some robust expansion plans over the next couple of years with the extra funding. The airline is planning to expand its fleet from 28 aircraft to over 100 with a set target of acquiring at least 40 aircraft by the end of FY2025. 

With the expanded fleet size, the airline has also planned to expand its routes, adding newer domestic as well as international destinations. 

Keeping employee welfare in mind, SpiceJet has assured that it will soon clear the pending Provident Fund (PF) and TDS dues by the end of this year.