SpiceJet shares dip after airline sends 80 pilots on 3-month leave without pay
Shares of domestic carrier SpiceJet declined on Wednesday after the airline asked 80 of its pilots to go on a three-month leave without pay.
Shares of domestic carrier SpiceJet declined on Wednesday after the airline asked 80 of its pilots to go on a three-month leave without pay.
SpiceJet shares slipped 4 percent intraday and were trading 3.4 percent lower from the previous close at Rs 42.10 on BSE at 12:23 pm. In 2022 (year-to-date), the stock has erased more than 38 percent of investors’ wealth as against the benchmark Sensex, which has risen 0.6 percent during the period.
The budget airline said the move is a temporary one to rationalise costs. "This measure, which is in line with SpiceJet's policy of not retrenching any employee that the airline steadfastly followed even during the peak of the COVID-19 pandemic, will help rationalise the pilot strength vis-a-vis the aircraft fleet," the airline said in a statement.
The pilots who have been told to be on leave without pay are from the airline's Boeing and Bombardier fleet.
According to a pilot cited by news agency PTI, the financial crunch that the budget carrier was facing was known to employees, but the sudden move has left many of them shocked.
“There is also uncertainty about the company's financial situation after three months. There is no assurance if those forced to go on leave will even be called back," the SpiceJet pilot said.
Earlier on July 27, the Directorate General of Civil Aviation had cut the airline's operations for eight weeks to 50 percent of its then departures that were approved under the summer schedule. The airline followed multiple technical malfunctioning incidents between April 1 and July 5.
First Published: Sept 21, 2022 12:32 PM IST
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