SpiceJet Announces Temporary Furlough of 150 Cabin Crew

SpiceJet, the Indian low-cost airline, has announced a three-month temporary furlough for 150 cabin crew members due to a less busy travel season. According to a report by the Economic Times, the decision comes as the airline continues to grapple with financial challenges, including difficulties in paying salaries and ongoing legal disputes with aircraft lessors, engine lessors, lenders, and former promoter Kalanithi Maran.

What is a Furlough?

A furlough is a temporary employee break due to a company’s financial constraints. It is important to note that a furlough is not a termination; employees remain on the company’s payroll and retain their employment status. During the furlough period, SpiceJet’s affected employees will continue to receive health benefits and accumulate earned leave.

Ongoing Issues Faced by SpiceJet:

SpiceJet, which currently operates a fleet of around 22 aircraft, has been placed under enhanced surveillance by the Directorate General of Civil Aviation (DGCA) following a special audit conducted in August 2024. This enhanced surveillance entails more frequent spot checks and night inspections.

While these measures may not immediately impact passengers, it is advisable for travelers to monitor their flight status closely, particularly during the upcoming festive season, when travel demand typically increases.

SpiceJet’s financial troubles have been ongoing for the past six years, and the current situation underscores the airline’s struggle to maintain operational stability in a highly competitive market.