KOLKATA: A week ago, rumours emerged that Indian low-cost carrier, SpiceJet, is going to send its employees on leave without pay on a rotational basis. However, SpiceJet was quick to respond. They rectified, saying that a limited number of staff from the engineering team has been put on leave without pay, for a month each, on rotational basis.
Now, this Friday, Chairman and MD of SpiceJet, Ajay Singh said that the company has asked the government for relief to ease the strain on its cash flow while it tries to navigate the challenges that were brought on by the coronavirus pandemic.
Indian airlines are staring at a monumental deficit in cash flow as India’s extended nationwide lockdown has left all passenger planes grounded at least till May 3. This measure was enforced in many countries to curb the spread of Coronavirus. It is leaving a massive dent in the cash reserves of airlines, globally, and the leading airline in India, at least in terms of domestic passengers it carries, is no exception.
Indian government is aware of that. They have consulted the aviation industry on its needs. Now, sources are reporting that supporting the sector is an important aspect of the stimulus package that the government is going to unveil.
There has been no official announcement for any such relief package yet. But Singh is optimistic about its prospects. He is optimistic about the opportunities that this crisis can potentially provide for the Indian aviation industry.
According to Singh, the government can help sort out some of the structural problems that have made it less competitive against its global peers. The high levies paid by carriers on aviation fuel which is not counted under the GST regime is one such problem, he added.
Airlines around the world are struggling to stay afloat amid the coronavirus pandemic. Major global air-carriers like Emirates and Singapore Airlines have grounded most of their flights, if not all. Some carriers like Virgin Australia, have run out of cash and succumbed to restructuring. Other airlines are applying for government grants, in countries that have such schemes available, to pay salaries to employees.