Mounting troubles for SpiceJet
Low-cost carrier SpiceJet narrowly avoided embarrassment at Mumbai Airport by resolving a pending financial matter between the airport and airline at the eleventh hour. On resolving the matter Mumbai Airport withdrew the passenger advisory for the airline.
On August 12, 2024, Mumbai International Airport had issued an advisory stating that SpiceJet operations from Mumbai International Airport will be temporarily disrupted from the midnight of August 13, 2024. Soon after SpiceJet authorities sprung into action and resolved the matter.
Once the matter was closed, SpiceJet informed the passenger that the advisory issued by MIAL has been withdrawn and all flights will run as per schedule.
MIAL too, tried to pacify the passenger by posting on social media that MIAL and SpiceJet are working together to minimise the inconvenience caused to certain passengers. The airport further urged the passengers to get in touch with the airline office or held desk to know the status of their flights.
Looks like SpiceJet narrowly dodged the bullet this time, but troubles seem to be mounting for the budget carrier as lessors have refused to accept chairman and managing director Ajay Singh’s offer for a settlement. Ajay Singh had pledged his shares as collateral for the airline’s outstanding liabilities. During the argument, the lessors said that they were unwilling to accept shares from a company with questionable stability.
The lessors have claimed that the airline owes them INR 50 crores.
The lessors' counsel demanded disclosure of Singh’s assets and gave SpiceJet 15 days to make alternative arrangements, ground and return the three engines in question. Next court hearing is scheduled for August 14, 2024.
To top the matter, sources have claimed that SpiceJet has not paid the employees salaries for the month of July 2024 citing operational financial commitments.
Besides, SpiceJet has also reduced its scale of operations, from March 31 to October 26, 2024 considered as the peak summer season of air travel in India, SpiceJet has reduced its flights by 26%.