Significant part of organisation asked to go on leave without pay: SpiceJet CMD Ajay Singh
He expressed hope that a relief package for airlines will come at the same time as a package for the rest of the economy.
April 20, 2020 / 06:33 PM IST
Ajay Singh, Chairman and Managing Director of low-cost carrier SpiceJet
A significant part of the organisation has been asked to go on leave without pay, SpiceJet Chairman and Managing Director Ajay Singh told CNBC-TV18 in an interview.
"We will try and do our best with respect to employees," Singh said.
The aviation industry has been financially battered due to the COVID-19 outbreak.
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Singh said things are as bad as they can be globally and it is extremely difficult to gauge the loss as a result of the ongoing crisis.
He noted that across the globe airlines have sought deferrals on lease rentals and have also asked employees to go on unpaid leaves.
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On the subject of resumption of operations, Singh said there is no clarity on the matter as yet except the presumption that lockdown ends on May 3. He added that he is not sure what the protocols related to resuming flight operations are and that they are awaiting instruction from the Centre.
He expressed hope that a relief package for airlines will come at the same time as a package for the rest of the economy. The airline hopes to resume some part of its operations by the middle of May, although they are not sure whether May 4 will be possible.
Singh went on to say that lease rental negotiation is underway and all lessors are willing to defer lease rentals, which would mean that there would be no cash flow implications for SpiceJet at least for the next few months.
"Some cash flow is coming from our cargo operations. The expectation is that our cargo operation will give us 100 crore to 150 crore this month," Singh said.