SpiceJet, the cash-strapped airline, has secured a much-needed financial boost of ₹3,000 crore through a recent Qualified Institutional Placement (QIP). The airline reported to stock exchanges that the fundraise received an overwhelming response from qualified investors.
While this financial infusion offers temporary relief to the struggling airline, SpiceJet still faces significant financial challenges, starting with its own workforce. Employees have been experiencing salary delays of at least a month, and the airline has failed to deposit provident fund contributions for the past two and a half years. In addition, the TDS deducted from employees' salaries has not been submitted to the government, leaving the airline with employee-related dues of around ₹700 crore.
Clearing its debt with lessors is essential for SpiceJet to continue using its current fleet and secure future leasing arrangements. Additionally, failure to settle statutory dues may result in penalties, and resolving salary delays for employees remains a top priority for the airline to regain stability.
