SpiceJet Sends 80 Pilots On Leave Without Pay To Cut Costs
SpiceJet announced in a statement on Tuesday that it had made the temporary decision to put some pilots on leave without pay (LWP) for a three-month period in order to reduce costs.
“In a temporary measure to rationalise costs, SpiceJet has decided to place certain pilots on leave without pay for a period of three months. This measure, which is in line with SpiceJet’s policy of not retrenching any employee which the airline steadfastly followed even during the peak of the Covid pandemic, will help rationalise the pilot strength vis-a-vis the aircraft fleet,” the airline said.
According to the sources, pilots on the Boeing and Q400 fleet have been asked to go on leave, without pay, in a move to cut costs.
The airline explained in its statement that the technical fault that led to two fatal crashes that caused the Boeing 737 MAX aircraft to be grounded between March 2019 and November 2020 hurt the financially troubled airline.
It said, “SpiceJet had in 2019 inducted more than 30 aircraft following the grounding of the 737 MAX aircraft. The airline had continued with its planned pilot induction program in the hope that the MAX would be back in service soon. However, the prolonged grounding of the MAX fleet resulted in a large number of excess pilots at SpiceJet.”
“We will be inducting MAX aircraft shortly and these pilots will be back in service as the induction begins. During the LWP period, pilots will remain eligible for all other employee benefits as applicable, all opted insurance benefits and employee leave travel,” the airline assured.
The airline has experienced financial difficulties. In addition, after numerous reported incidents involving air safety, the Director General of Civil Aviation ordered SpiceJet to operate only 50% of its flights for the following eight weeks on July 27.
“Even after placing certain pilots on leave without pay, SpiceJet will have sufficient number of pilots to operate its full schedule as and when the DGCA restriction on flights is lifted,” SpiceJet said in its statement.