COVID-19 Lock-down: SpiceJet to seek government funds to endure pandemic losses

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.

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