SpiceJet plans to rightsize workforce to match fleet
It will take "tough decisions" if need be, to rightsize its workforce to suit its reduced fleet, its chief operating officer said yesterday.
By ET Bureau | Updated:
MUMBAI: Budget carrier SpiceJet will take "tough decisions" if need be, to rightsize its workforce to suit its reduced fleet, its chief operating officer said yesterday.
There will be some "key decisions" taken in the coming weeks COO Sanjiv Kapoor told reporters on the sidelines of the India Aviation Summit organised by Sydney-based consultant Capa-Centre for Aviation. It will also shortly decide on whether to continue with the Bombardier Q400s in its fleet, he added.
The beleaguered carrier recently announced a change of ownership with original co-founder Ajay Singh coming on board to replace media baron Kalanithi Maran. The airline has been hit by losses, cut flights and fleet, delayed and defaulted on payments, taxes and salaries before Singh announced he and a set of investors would put in Rs 1,500 crore into the airline. The first tranche is likely to come by February 15.
SpiceJet has since December returned about 20 planes and cancelled more than 2,000 flights.
The carrier had a staff strength of 5,700 last year which has now come to about 4,500. The reduction has been through "natural attrition", but the airline is still overstaffed. SpiceJet currently has a fleet of 33 planes (18 Boeings and 15 Bombardier Q400s). It plans, once the money comes in, to increase the number of Boeings to 26 which will make it a total fleet of 41.
The airline plans to have less than 100 employees per plane, which means total staff strength of 4,000 or less.
Pilots and crew constitute the biggest chunk of employees to leave SpiceJet in the past few months, which means the "tough decisions" may be for the top and middle management also.
Kapoor claimed that the "worst is over" for SpiceJet and said that while it has trimmed flights in some sectors, it will add some as well.
SpiceJet is starting flights from Amritsar, Mangalore and Chandigarh to Dubai. It already has flights from five cities in the country .
Kapoor also said the airline which has since December stopped selling food on board, will start catering services in 7-10 days.
There will be some "key decisions" taken in the coming weeks COO Sanjiv Kapoor told reporters on the sidelines of the India Aviation Summit organised by Sydney-based consultant Capa-Centre for Aviation. It will also shortly decide on whether to continue with the Bombardier Q400s in its fleet, he added.
The beleaguered carrier recently announced a change of ownership with original co-founder Ajay Singh coming on board to replace media baron Kalanithi Maran. The airline has been hit by losses, cut flights and fleet, delayed and defaulted on payments, taxes and salaries before Singh announced he and a set of investors would put in Rs 1,500 crore into the airline. The first tranche is likely to come by February 15.
SpiceJet has since December returned about 20 planes and cancelled more than 2,000 flights.
The carrier had a staff strength of 5,700 last year which has now come to about 4,500. The reduction has been through "natural attrition", but the airline is still overstaffed. SpiceJet currently has a fleet of 33 planes (18 Boeings and 15 Bombardier Q400s). It plans, once the money comes in, to increase the number of Boeings to 26 which will make it a total fleet of 41.
The airline plans to have less than 100 employees per plane, which means total staff strength of 4,000 or less.
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Pilots and crew constitute the biggest chunk of employees to leave SpiceJet in the past few months, which means the "tough decisions" may be for the top and middle management also.
Kapoor claimed that the "worst is over" for SpiceJet and said that while it has trimmed flights in some sectors, it will add some as well.
SpiceJet is starting flights from Amritsar, Mangalore and Chandigarh to Dubai. It already has flights from five cities in the country .
Kapoor also said the airline which has since December stopped selling food on board, will start catering services in 7-10 days.
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