 "Spicejet")
Spicejet (Photo: Shutterstock)
In fresh trouble for Indian flight operator SpiceJet, the Dubai airport on Thursday (August 29) prohibited passengers from checking in for their SpiceJet flights due to the airline’s unpaid dues, according to a report by The Hindu. Several flights were operating empty out of Dubai, the report said citing industry sources.
The national daily further reported that passengers flying from Dubai with SpiceJet have been experiencing similar problems throughout the past week.
A senior official from the Ministry of Civil Aviation stated that the ministry is keeping a close watch on SpiceJet, acknowledging that the airline is going through a challenging period, the report noted.
Mounting troubles for SpiceJet
On August 12, 2024, Mumbai airport issued an advisory to SpiceJet passengers, warning of potential disruptions to their flights, though the advisory was subsequently withdrawn.
Employees of the airline have also expressed frustration over delayed salaries, which have been pending for two months, affecting pilots and cabin crew among others. In Guwahati, SpiceJet’s loaders, cleaners, and drivers refused to work and staged a protest outside the airport over the non-payment of wages.
Concerns have also arisen about the airline’s failure to deposit its share of the provident fund with the Employees’ Provident Fund Organisation and the tax deducted at source with the Income Tax Department.
Over the past year, several engine and aircraft lessors have taken SpiceJet to court, seeking its liquidation due to the airline’s inability to settle its dues.
SpiceJet says it will clear dues with French companies
Earlier last week, in a separate matter, SpiceJet informed the Delhi High Court that it intends to settle all outstanding dues by September 30, 2024. The airline pledged to make an additional payment of $1.6 million along with monthly instalments of $1 million by that date.
The court was reviewing SpiceJet’s appeal against a single-bench order that had grounded three leased engines from the French companies Team France 01 SAS and Sunbird France 02 SAS.
During a hearing before a division bench of the Delhi High Court, SpiceJet emphasised its position as one of the few remaining low-cost carriers in the country alongside IndiGo, while acknowledging the challenges it faces to remain operational in the current environment.
The airline’s counsel admitted that as of August 12, there was an outstanding default amount of $2.67 million and requested an extension until September 30 to clear the dues. He also mentioned that the airline plans to raise $357 million. However, the court reprimanded the airline, pointing out that if SpiceJet had the financial capability to pay, it would not be defending itself in court.
First Published: Aug 29 2024 | 1:30 PM IST
