SpiceJet may cut 2,000 jobs, scale down operations to stay afloat
19 January 2015
Ajay Singh, the new owner of SpiceJet airlines, is expected to axe as many as 2,000 jobs to trim working costs and thereby help cut losses.
The cash-strapped airline is planning to balance its aircraft versus employee ratio, indicating the prospects of a lay off.
Sources said the board of SpiceJet might go for a rejig of the top management after the Maran family agreed to transfer 'ownership, management and control' in the airline to its original founder and new owner Ajay Singh.
Sun Group CFO had also pointed out that for SpiceJet to stay in this sector, it would have to trim down manpower in a big way.
The loss-making budget carrier has already scaled down operations and is likely to stop flights on some non-profitable routes as well.
As part of the top-level rejig, sources said SpiceJet managing director S Natrajan might also tender his resignation soon.
SpiceJet had reported Rs310 crore loss in the July-September 2014 quarter against a loss of Rs124 crore in the previous quarter. The September quarter losses were, however, lower compared to the Rs560-crore loss in the year-ago quarter ended 30 September 2013.
The Rs1,500 crore fund infusion by Ajay Singh is not enough to save SpiceJet and with the airline still finding it difficult to operate as usual, the euphoria over Singh's rescue act for the cash-strapped airline has also waned now.
Last Thursday, the SpiceJet board approved the 'Scheme of Reconstruction and Revival' that would see Kalanithi Maran and Kal Airways transferring ownership along with ceding management and control of the ailing airline to Ajay Singh.