NEW DELHI: SpiceJet, a prominent player in the airline industry, has announced the clearance of all outstanding employee provident fund (PF) dues, amounting to an impressive Rs160.07 crore, which accumulated over two years.
The airline’s financial rejuvenation can be closely attributed to its successful endeavours over the past three months, particularly following the raising of Rs 3,000 crore through a Qualified Institutional Placement (QIP).
The influx of capital, which was notably oversubscribed by 87 Indian and international institutions, has enabled SpiceJet to systematically address its statutory liabilities. The airline has not only fulfilled its PF obligations but has also settled outstanding amounts related to Tax Deducted at Source (TDS) and Goods and Services Tax (GST), in addition to employee salary dues.
Fulfilling statutory obligations
Beginning in October 2024, SpiceJet’s internal cash flows have been strategically directed towards fulfilling statutory obligations, showcasing the airline’s significant improvement in financial health and operational discipline.
The development underscores the effectiveness of SpiceJet’s financial turnaround strategy, which has prioritised the settlement of outstanding dues and the resolution of disputes with lessors and creditors.
Ajay Singh, the Chairman and Managing Director of SpiceJet, articulated the sentiment of this transformative phase for the airline. He stated, “This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees.”
The statement reflects SpiceJet’s proactive approach to ensure not just compliance, but also to foster a productive and sustainable environment for its stakeholders.
