Private budget carrier SpiceJet has announced a 20 per cent salary hike for pilots from October. This salary revision follows a 6 per cent hike announced last month. Sources told CNBC TV-18, the first tranche of the Emergency Credit Line Guarantee Scheme (ECLGS) payment has been received by the airline, and the second is expected shortly.
According to an internal mail to all the pilots, senior VP, Gurcharan Arora said that Spicejet has received the approval for a loan under the government’s ECLGS scheme. “The first tranche of the payment has already been received and the second tranche is expected very soon. Our management is working to raise an additional 200 million dollars.”
Moreover, the company will be depositing the TDS of all employees in the next two-three weeks. And, a significant portion of the PF will also be credited.
The company has been in the news of late for all the wrong reasons. A slew of flight mishaps this year has taken investors and passengers by shock. This includes collision with electric poles, severe turbulence, malfunctioning weather radar, technical faults, and engine fires.
SpiceJet airline had earlier reported a net loss of Rs 789 crore (Rs 420 crore, excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of Rs 729 crore in the quarter ending 30 June, 2021 as the business was severely impacted by record high fuel prices and a depreciating Rupee.
“Given the de-registration of its aircraft, lack of transparency for investors, replacement of cheap Boeing planes and a weak balance sheet, we are reducing FY23E EBITDAR by 27 percent and the target price to Rs 49 (earlier: Rs 67),” Edelweiss Securities said. It has a ‘hold’ rating on the stock.
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