SpiceJet temporarily furloughs 150 cabin crew members amid financial crunch and weak travel season

SpiceJet's furlough won't affect the employees' status, and they will get all health benefits as well as earned leave during the period.

Published on: Aug 30, 2024, 21:08:32 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

Prefer HTon Google

Share via

Copy link

SpiceJet, which has been grappling with financial losses over the last six years has announced it would temporarily furlough 150 cabin crew members for three months due to a less busy travel season, the Economic Times reported, adding that the airline had also been facing challenges in paying salaries, facing legal disputes with aircraft lessors, engine lessors, lenders, and even former promoter Kalanithi Maran.

A SpiceJet passenger Boeing 737-800 aircraft (Reuters)

Also Read: You may soon be able to board flights at Abu Dhabi airport without a passport and ticket

What is a furlough?

A furlough is a temporary suspension, but not termination of employees due to financial issues faced by a company.

Also Read: Sam Altman's OpenAI says ChatGPT's weekly users have grown to 200 million

SpiceJet's furlough won't affect the employees' status, and they will get all health benefits as well as earned leave during the period.

What are the issues faced currently by SpiceJet?

SpiceJet, with an operational fleet of around 22 aircraft, was placed under surveilance by the Directorate General of Civil Aviation (DGCA) earlier in the day, following a special audit conducted in August 2024.

This enhanced surveillance includes more frequent spot checks and night inspections.

This might not result in immediate operational issues for passengers, but it would be advisable for passengers to monitor their flight status closely, especially since the festive season is approaching.

Also Read: Meet Zoho's Radha Vembu: India's richest self-made woman worth ₹47,500 crore

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.