SpiceJet Delays Salaries Of Senior Staff, Says It's Part Of "Phased Disbursement Schedule"

In a troubling development for one of India's low-cost carriers, SpiceJet has delayed salary payments to a sizable portion of its workforce. According to a report by PTI, while junior employees earning up to Rs 55,000 per month received their August salaries on time, senior staff, primarily those at the Assistant Manager level and above, face delays of 10 to 15 days.

This payment strategy affects a significant number of the airline's 6,484 employees, including 4,894 permanent staff, as detailed in the company's FY25 annual report. A source familiar with the matter revealed, "SpiceJet has once again started delaying salary payments to its staff. While employees drawing up to Rs 55,000 per month are getting payments on time, the rest of the staff, mostly Assistant Managers and above level, are getting payments with a delay of 10-15 days."

A SpiceJet spokesperson explained to IANS that the airline follows a phased disbursement schedule for salary payments during lean periods, similar to some other industries, where payments are made over a few days.

"Our employees are well aware of this schedule, which has been a consistent practice, and there has been no change or deviation from it," the spokesperson added.

SpiceJet, a Gurugram-based airline, has a workforce of 6,484 employees, with 4,894 permanent staff members, as per its Fiscal 2025 annual report. Notably, the airline provided an interest-free advance of Rs 32 crore to its Chairman and Managing Director, Ajay Singh, for five years in 2024-25.

This advance, approved by the Nomination and Remuneration Committee and the board, will be adjusted from Mr Singh's salary over the specified period, with Rs 32 crore being almost equivalent to his next five years' salary. Interestingly, Mr Singh received an additional Rs 7.2 crore as remuneration for FY25. Some experts have questioned the governance practice of providing this advance amidst the airline's financial struggles.

"The company has adjusted the advance from the salary of subsequent months (April and May 2025), as per the company's policy. Further, this advance is not prejudicial to the interest of the company," the report said.

The budget airline reported a net loss of Rs 238 crore in the June quarter of this year. Despite having a total fleet of 53 planes, only 18 aircraft were operational as of September 13, according to fleet tracking website Planespotter.com. Notably, the airline had announced plans to expand its fleet three times in the last year, each time by at least 10 planes. In July last year, SpiceJet had 18 operational aircraft and 38 grounded planes out of a total fleet of 56.

The airline had raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) in September last year, stating that the funds would be used to operationalise grounded aircraft, acquire new planes, invest in technology, and expand into new markets. However, the progress seems slow, with a significant number of aircraft still grounded.