SpiceJet pays salaries in phases as cash crunch cuts flight operations
SpiceJet is releasing May salaries in tranches amid persistent liquidity stress. The carrier is operating about 85 daily flights versus 140 planned for summer, with domestic market share down to 1.9% in June from 3.9% in January. NCLT has reserved its verdict on Aviator ML’s ₹60 crore insolvency claim.
What happened
SpiceJet is releasing employee salaries in phases amid persistent liquidity stress, operating only 85 daily flights against 140 planned. Its domestic share fell
Key facts
- May salaries paid to junior and support staff; remaining salaries phased
- 85 daily flights currently operated versus about 140 planned for summer schedule
- 14 operational aircraft, including 3 Airbus A320s on damp lease
- Domestic market share fell to 1.9% in June from 3.9% in January
- Aviator ML alleges a payment default of around ₹60 crore
- Share price ₹11.30, up 0.27% on Friday
- Stock down 62% year-to-date and 69.08% over one year
Why this matters
The carrier’s distress could create partnership or asset-acquisition opportunities, but any deal would require deep diligence on liabilities, fleet availability and creditor exposure.
What to watch
- NCLT ruling and any admission, dismissal, settlement or appeal related to Aviator ML's ₹60 crore claim.
- Evidence of full versus phased salary payments for June and subsequent months.
- Daily flight count, cancellation rate, aircraft utilization and whether operations remain near 85 flights or recover toward the 140-flight summer plan.
- DGCA monthly domestic market-share data; another decline below 1.9% would signal worsening network viability.
- Lessors' repossession actions, lease-payment disputes, aircraft grounding disclosures or fleet reactivation announcements.
- New equity, debt restructuring, promoter funding, asset-sale proceeds or creditor settlement announcements.
- Passenger complaints, refund delays, travel-agent booking restrictions and changes in advance-booking demand.
- Competitors' capacity additions on abandoned SpiceJet routes, especially by IndiGo, Air India group and Akasa Air.
- Concentrate flights on cash-generative metro, religious and peak-demand routes while cutting marginal sectors.
- Continue staggered salary releases and seek deferred-payment arrangements with lessors, vendors, airports and fuel suppliers.
- Pursue settlement or challenge strategy around Aviator ML's ₹60 crore insolvency claim before the NCLT verdict is operationalized.
- Seek bridge financing, equity infusion, aircraft/engine monetization or promoter-linked funding to cover near-term working capital.
- Use fare increases and lower promotional inventory on constrained routes, which may lift yields but further weaken volume share.
- Compete selectively for retained airport slots and protect high-value corporate and travel-agent distribution relationships.