Low-cost airline SpiceJet on Tuesday said it will put certain pilots on leave without pay (LWP) for three months as a temporary measure to rationalise cost. The Guguram-based airline that is facing a liquidity crunch said the measure is in line with its policy to not retrench any employee, something that it followed even during the peak of the Covid pandemic, adding the move will help rationalise the pilot strength vis-à-vis aircraft fleet.
Even after placing certain pilots on leave without pay, SpiceJet will have sufficient number of pilots to operate its full schedule as and when the DGCA restriction on flights is lifted, it further said.
SpiceJet reported a loss of ₹784 crore for the quarter ending June 30, compared to a loss of ₹731 crore a year earlier. The company had also reported a loss of ₹485 crore for the quarter ending March. It recently announced the appointment of Ashish Kumar as its chief financial officer.
In a statement, the struggling carrier said SpiceJet had in 2019 inducted more than 30 aircraft following the grounding of the 737 MAX aircraft. “The airline had continued with its planned pilot induction program in the hope that the MAX would be back in service soon. However, the prolonged grounding of the MAX fleet resulted in a large number of excess pilots at SpiceJet. We will be inducting MAX aircraft shortly and these pilots will be back in service as the induction begins.”
During the LWP period, pilots will remain eligible for all other employee benefits as applicable i.e. all opted insurance benefits and employee leave travel, it said.
{{/usCountry}}During the LWP period, pilots will remain eligible for all other employee benefits as applicable i.e. all opted insurance benefits and employee leave travel, it said.
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