SpiceJet clears salary dues days after raising Rs 3K crore through QIP

The domestic passenger market share of the airline had shrunk to just 2.3 per cent in August this year, as per the latest data released by the Directorate General of Civil Aviation (DGCA)

Low-cost carrier SpiceJet late Wednesday credited the pending salaries of its employees for the months between June and August this year, a company source said. 

The clearing of salary dues comes days after the airline raised Rs 3,000 crore through a Qualified Institutional Placement (QIP). 

“SpiceJet has cleared all pending salary dues of employees. Salaries of July and August of all employees and those who hadn't received June salaries were disbursed last evening,” a person close to the development said on Thursday. 

Apart from the capital raised via the QIP route, the airline had said it would receive an additional Rs 736 crore from a previous funding round with a view to improve its financial stability and support growth plans. 

Last week, the airline had revealed that it did not pay statutory dues amounting to nearly Rs 427 crore between April 2020 and August 2024 due to its “constrained financial position”.  This includes Rs 219.8 crore in tax deducted at source (TDS), Rs 71.33 crore in goods and services tax (GST), and Rs 135.47 crore towards provident fund (PF) contribution.

The carrier had disclosed that 36 of its 58 aircraft were grounded on account of reasons such as an “alleged default” in payments to aircraft lessors, financial difficulties affecting aircraft maintenance, and unavailability of spare parts and aircraft components. 

This comes as the airline’s domestic market share continues to shrink. The domestic passenger market share of the airline had shrunk to just 2.3 per cent in August this year, according to the latest data released by the Directorate General of Civil Aviation (DGCA). 

It carried a total of 302,000 domestic passengers in August, which was 44.2 per cent lower year-on-year. In January last year, the airline held a 7.3 per cent market share.

For the last several quarters, the low-cost carrier had been grappling with a cash crunch amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors and lenders.