SpiceJet says will hike salaries of senior pilots by 20% from October

The carrier earlier this week sent 80 pilots on leave without pay for three months to save costs

After sending about 80 pilots on leave without pay for three months, SpiceJet said on Thursday it will increase the salaries of its remaining senior pilots by 20 per cent from October.

Demand for senior pilots has increased as new carrier Akasa Air and revamped Jet Airways are willing to pay high salaries to hire them.

SpiceJet airline has been reporting losses for the past four years. It has operated less than 50 per cent of its flights since July 27, as per the order of the Directorate General of Civil Aviation (DGCA) in the wake of safety violations.

"Keeping with our commitment of increasing salaries in a calibrated manner as our business improves, the salary for the month of October will see an increase of around 20 per cent for our captains and senior first officers," said Gurcharan Arora, senior vice president--flight operations, SpiceJet, in an email to pilots.

He said the carrier is working to increase the base salary of its pilots. "The salary that our line captains received last month saw an increase of six per cent."

SpiceJet has received approval for a loan under the government's ECLGS (Emergency Credit Line Guarantee Scheme) scheme. "The first tranche (of loan under the ECLGS) 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," Arora said.

In a statement earlier this week, the airline had said that it will induct more 737 Max aircraft shortly and then the pilots, who have been sent on leave without pay for three months, will be back in service.

SpiceJet incurred net losses of Rs 316 crore, Rs 934 crore, Rs 998 crore and Rs 1,725 crore in FY19, FY20, FY21, and FY22. It incurred a loss of Rs 729 crore in Q1 of FY23.