SpiceJet hikes salary of class of pilots after getting ECLGS fund

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Mumbai: SpiceJet According to an internal communication, the salaries of their captains and senior first officers have increased by about 20 per cent since October when they received the first tranche of funds under the government’s credit guarantee scheme. According to a communication sent to airline pilots on Wednesday, the loss-making Ajay Singh-promoted carrier is also expected to deposit TDS of all employees in the next two to three weeks.
The communication to airline pilots came on a day it sent 80 of its cockpit crew on leave without pay for three months and aviation regulator DGCA announced that it has extended the 50 per cent restrictions on its flights till October 29.
On September 2, sources in the airline had told PTI that the carrier was likely to receive around Rs 225 crore under the government’s credit guarantee scheme ECLGS.
“SpiceJet has got approval for loan under ECLGS scheme of Central Government. The first installment of payment has already been received,” SpiceJet’s Head of Flight Operations Gurcharan Arora said in the communication.
However, he did not mention the amount received in the first installment.
Under the scheme announced in May 2020 in the wake of the pandemic to help various sectors, institutions will get loans at a concessional rate of 7 per cent.
On August 17, the Union Cabinet approved raising the ECLGS limit from Rs 50,000 crore to Rs 5 lakh crore.
Arora also told pilots that a second installment of funds under the plan is also expected “soon” and that the company is “working to raise an additional $20 million.”
Facing financial constraints amid higher fuel costs and a weaker rupee against the US dollar, SpiceJet reported a net loss of Rs 789 crore for the June quarter and Rs 458 crore for the quarter ended March 2022.
According to the communication, the airline is working towards increasing the basic pay of its pilots every month, with line captains’ salaries increasing by 6 per cent in August.
“In keeping with our commitment to increase pay as business improves, October salaries for our captains and senior first officers will increase by about 20 per cent,” Arora said.
It will take a few days for TDS to be reflected in the pilot tax credit statement. Similarly, a significant part of the PF contribution of all the employees will also be deposited as per the communication.



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