SpiceJet In Trouble? CCO, Commercial Team Members Leave Firm

A number of members from SpiceJet's commercial team, including the Chief Commercial Officer, have departed from the company following the announcement of strategic restructuring, according to an airline spokesperson.

"As part of SpiceJet's strategic restructuring, several members of the commercial team including the Chief Commercial Officer have left the company," the SpiceJet spokesperson said.

According to a spokesperson's concise statement on Tuesday, the company is still experiencing substantial increases in both revenue and load factors.

"With the recent fund raise, SpiceJet has speeded up the process of resolution of all past disputes. The Company looks forward to adding capacity, growing rapidly and continuing to play a large role in the Indian aviation sector," the spokesperson's statement added.

SpiceJet has recently obtained investments amounting to Rs 1,060 crore through a preferential issue. Prominent investors such as Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited have participated in this funding round. A portion of these funds will be utilized to resolve previous financial obligations.

The airline allegedly intends to raise Rs 22.50 billion through the sale of shares and warrants.

SpiceJet, despite encountering various challenges, believes that the funds raised will be crucial in supporting their plans for operational growth. These plans include improving their fleet, expanding their route network, and implementing technological advancements.

SpiceJet, a low-cost airline, is planning to lay off at least 1,000 employees in order to save approximately Rs 100 crore per year.

On February 13, a representative from SpiceJet airline confirmed that the reduction in workforce was a component of their plan to reduce costs and also ensure profitable expansion.

The airline, established in 2005, presently employs approximately 9,000 individuals and operates a fleet of 30 planes, with 10 of them being wet-leased. Prior to the pandemic in 2019, the airline possessed a fleet of 118 planes and employed over 15,000 people.

In the meantime, the airline managed to decrease its net loss to Rs 428 crore in the second quarter of the fiscal year 2024, which is a notable improvement compared to the net loss of Rs 835 crore in the second quarter of the fiscal year 2023. SpiceJet currently operates approximately 250 flights per day, serving 48 destinations within India as well as international destinations. Its fleet is a mix of aircraft, including the Boeing 737 Max, Boeing 700 and Q400s.

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