SpiceJet Delays Senior Staff Salaries, Calls It 'Phased Payment' Plan During Tough Times

Mumbai: Low-cost airline SpiceJet is again in the news for delaying salary payments to a large part of its workforce. While junior employees earning up to Rs 55,000 per month received their August salaries on time, senior staff, especially those at the Assistant Manager level and above, are facing delays of 10 to 15 days.

This delay affects a major portion of SpiceJet's workforce, which includes 6,484 employees, out of which 4,894 are permanent staff, according to the company’s FY25 annual report.

Airline Says, This Is Not New

A SpiceJet spokesperson told news agency IANS that the airline follows a 'phased disbursement schedule' for salary payments during financially tough times. This means that salaries are paid in stages over a few days, not all at once.

The spokesperson added, 'Our employees know this schedule well. It is a regular practice, and we have not made any changes to it.'

Controversial Advance to Chairman

Interestingly, while employees are facing delays in salary, Ajay Singh, the Chairman and Managing Director of SpiceJet, received an interest-free advance of Rs 32 crore. This was approved by the company’s Nomination and Remuneration Committee and will be adjusted from his salary over the next five years.

This amount is almost equal to five years’ worth of his salary. On top of that, Mr. Singh also received an extra Rs 7.2 crore as remuneration for the year. Some financial experts have raised questions about this move, especially since the airline is going through a tough financial period.

Struggles With Losses and Grounded Planes

In the June 2025 quarter, SpiceJet reported a net loss of Rs 238 crore. Out of its total fleet of 53 planes, only 18 were flying as of September 13, according to Planespotters.com.

Even though the airline had announced plans to expand its fleet three times last year, most planes remain grounded. In July last year, it had the same number of operational aircraft – 18 – and 38 planes were grounded.

SpiceJet had also raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) in September last year, promising to use the funds to bring grounded planes back, buy new aircraft, and invest in new technologies. But progress has been very slow.