Budget carrier SpiceJet is facing intensified scrutiny as more than 500 former employees have come forward claiming significant delays in their “Full and Final” (F&F) settlements.
The allegations come at a time when the airline is already navigating a severe financial crisis, characterized by a shrinking fleet, mounting legal battles, and delayed salary payments for existing staff.
The Breaking Point for Former SpiceJet Workforce
The issue gained widespread public attention following a social media post by Rishita Bhardwaj, a former cabin crew member with a five-year tenure.
Rishita alleged that even three years after her resignation and serving a full notice period, her dues remain unpaid, causing her prolonged mental and financial stress.
Her case appears to be part of a broader pattern; workers assert that over 500 ex-staff members are still waiting for their compensation.
While isolated complaints have surfaced in the past, these recent reports suggest systemic failures in the airline’s cash flow management and internal processing systems.
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Shrinking Operations and Growing Liabilities
The crisis isn’t limited to former staff. As of May 2026, SpiceJet has initiated a massive cost-cutting drive that includes:
- Workforce Reductions: Over 500 current employees have been impacted in a first phase of layoffs and furloughs, with up to 20% of the total workforce (approx. 1,300 people) potentially affected.
- Salary Delays: Payments for existing employees have reportedly slipped to a three-month lag in some cases.
- Fleet Shrinkage: The airline is now operating just 13 of its own aircraft, down significantly from its previous strength of around 50.
The airline’s financial obligations are staggering, with total liabilities estimated at over ₹4,500 crore.
This includes approximately ₹100 crore in pending statutory dues such as unpaid GST, provident fund contributions, and TDS.
Legal and Regulatory Heat
Beyond personnel issues, SpiceJet is battling creditors in court.
A UK court recently ordered the airline to pay $8 million to an engine lessor, and it has informed Indian courts of its inability to pay ₹144 crore owed to Kalanithi Maran.
These escalating financial demands continue to cast a shadow over the airline’s ability to prioritize its workforce obligations.
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About the Author
Sahiba Sharma
Contributing Writer