New Delhi: SpiceJet has recently cleared ten months’ worth of Provident Fund (PF) dues for its employees after raising ₹3,000 crore through a Qualified Institutional Placement (QIP). Which allowed the airline to settle four months of pending salaries and its GST dues. For months, SpiceJet had to face financial challenges and had to struggle paying salaries on time and meet other financial obligations, partly due to the impact of the COVID-19 pandemic earlier.
The recent fund infusion is seen as a lifeline for the company, which has been facing cash flow issues and Financial backlogs and by clearing the long-pending dues, SpiceJet aims to rebuild trust among its employees and streamline all of its operations. Paying all of its Previous PF dues is not only a legal responsibility but also important for employee morale and It matters a lot. With this step, the company is trying to regain stability and Retention of their Employees and it has said to be a great move after a tough phase.
In addition to clearing PF dues, the airline has also settled overdue salaries, which had caused concern among the Employees. By addressing these issues, the management hopes to boost employee’ s confidence and create a more positive working environment.
The ₹3,000 crore QIP fund is expected to help SpiceJet stabilize its financial position and improve relationships with its employees, creditors, and other stakeholders. The airline now plans to focus on operational stability and fulfilling other delayed financial obligations. The move to resolve PF dues and salary payments is a strong signal that SpiceJet is working towards overcoming its financial challenges and regaining its Employees Confidence, and is all set to Compete with other players in the aviation Sector.
