SpiceJet Flights Canceled Due to Unpaid Dues, Passengers Stranded in Dubai

On Wednesday, several SpiceJet flights from Dubai to India were canceled due to non-payment of dues by the airline to the Dubai airport authorities. This resulted in hundreds of passengers being stranded at the Dubai airport. The airline spokesperson mentioned that the cancellation was due to operational reasons but did not provide further details. The airline took immediate steps to alleviate the impact by rebooking affected passengers on subsequent flights and providing hotel accommodations.

It was stated that all scheduled flights from Dubai are now operating as planned. SpiceJet, facing financial difficulties, has been delaying staff salaries and vendor payments.

The airline has also reportedly not made Employee Provident Fund Contributions for its 11,581 staff since January 2022. While the airline reported a profit in the January-March quarter of the previous fiscal year, it faced losses in the December quarter of the same year and for the full fiscal year 2023-24.

To address its financial challenges, SpiceJet’s board approved a proposal to raise up to Rs 3,000 crore through the qualified institutional placement (QIP) process. As of August 2, 37 SpiceJet aircraft were grounded, including 18 Boeing 737 and 18 regional jets.

The airline has a total of 59 planes in its fleet which include 32 Boeing737 and 24 others. Additionally, it has one Airbus 340 and two Airbus planes on wet-lease.