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SpiceJet May Consider Layoffs Ahead of Proposed Investment

Beleaguered budget carrier SpiceJet may consider retrenching a section of its around 5000 employees ahead of the proposed fund infusion by the potential investors in the company.
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SpiceJet May Consider Layoffs Ahead of Proposed Investment

New Delhi: Beleaguered budget carrier SpiceJet may consider retrenching a section of its around 5000 employees ahead of the proposed fund infusion by the potential investors in the company.

"Staffing levels are functions of operations," SpiceJet chief operating officer Sanjiv Kapoor said here on Wednesday, indicating that the airline could consider laying off a section of the employees.

His comments assume significance in view of the fact that SpiceJet has not only reduced its Boeing aircraft fleet significantly but also curtailed the number of daily flights to around 200 from a peak of around 340.

He said that the company's focus will be on "simplicity and cost structure".

SpiceJet, which remained grounded for almost one full day in December last year because of the cash crunch, has already allowed 43 of its pilots to leave the airline without serving the mandatory six-month notice period.

The airline has reduced its Boeing plane fleet to almost half from 35 in July last year.

"As we currently have a surplus of pilots after fleet reductions, we are looking for ways to adjust staffing headcount down accordingly. We are looking into ways to do this in a fair and reasonable manner, keeping in mind related regulations and balancing the interests of all stakeholders," the airline had said in a statement last month.

Earlier, Mr Kapoor along with the airline's chief commercial officer Kanesawaran Avili on Wednesday met Civil Aviation Secretary V Somasundaran and other aviation ministry officials.

The meetings were a part of the airline's ongoing discussions with the government over its much-awaited revival plan, which the government has sought from the carrier before deciding on its fate.

At present, the Kalanithi Maran-promoted carrier is surviving on help from the government, which has allowed it to avail credit facility for landing, parking and route navigation fee from the Airports Authority of India (AAI) for a limited period.



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