2024-09-20 02:49:06
New Delhi: The troubles of SpiceJet, an airline struggling to save its existence, are increasing. The company has admitted to not paying the TDS of about Rs 220 crore deducted from the salaries of employees between April 2020 and August 2023 to the tax authorities. Also, the company has not paid PF of more than Rs 135.3 crore of the employees during the same period. The airline’s preliminary placement document filed with the BSE states that TDS of about Rs 72 crore for the financial years 2009-10 to 2013-14 is disputed. Apart from this, the LCC has listed significant dues of customs duty, service tax and GST as ‘disputed’. The airline is trying to raise Rs 3,000 crore by the end of the month so that it can save its existence. The PPD states that due to our financial position, we are allegedly defaulting under several of our aircraft lease agreements. Due to this, several aircraft in our fleet are grounded. Due to such alleged defaults, our aircraft lease companies and other vendors have initiated legal or enforcement proceedings against us. This has adversely affected the company’s business, financial condition and operations.
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More than half the planes are parked
The airline has grounded more than half of its fleet. The company has a total of 64 aircraft, of which 36 aircraft are grounded till June 30, 2024. SpiceJet says this has happened due to alleged default in payment of dues to the companies leasing aircraft. Also, due to lack of money, the company is not able to maintain the aircraft. Both the traffic and market share of the company have declined after the pandemic. The PDP states that the company will spend a large part of the proposed capital to land the fleet. The airline has incurred losses in the last three financial years.