New Delhi:

A SpiceJet employee was arrested after she slapped a male assistant sub inspector following an altercation over security screening at the Jaipur airport. The incident was caught on a CCTV camera at the airport.

According to CISF officials, Anuradha Rani was stopped by assistant sub inspector Giriraj Prasad over not having valid permission to enter through a gate while she was entering the airport with other staff members around 4 am. Ms Anuradha was then asked to undergo screening for airline crew at a nearby entrance but no female CISF personnel was present there at the time, they added.

The assistant sub inspector then called for a female colleague to complete the security check but an argument had already escalated by then which ended with the female employee slapping the assistant sub inspector, said Jaipur airport station house officer Ram Lal.

According to an official statement by a SpiceJet spokesperson, the employee had a “valid airport entry pass”. The company has also alleged that the female employee was “subjected to inappropriate and unacceptable language by the CISF personnel, including asking her to come and meet him after his duty hours at his home.”

“Today, an unfortunate incident occurred at Jaipur Airport involving a SpiceJet female security staff member and a male CISF personnel. While escorting a catering vehicle at the steel gate, our female security staff member, who had a valid airport entry pass issued by the Bureau of Civil Aviation Security (BCAS), India’s civil aviation security regulator, was subjected to inappropriate and unacceptable language by the CISF personnel, including asking her to come and meet him after his duty hours at his home,” said the SpiceJet spokesperson.

“SpiceJet is taking immediate legal action in this serious case of sexual harassment against its female employee and has approached the local police. We stand firmly by our employee and are committed to providing her with full support,” the spokesperson added.

Police have registered a case against the female employee under sections 121 (1) (voluntarily causing hurt to deter public servant from his duty) and 132 (assaulting public servant) of Bharat Nyaya Sanhita (BNS).

KAL Airways and Kalanithi Maran on Monday said they will seek more than ₹1,323 crore in damages from SpiceJet and its chief Ajay Singh as well as challenge the recent Delhi High Court order in the ongoing dispute between the two sides.
| Photo Credit: REUTERS

KAL Airways and Kalanithi Maran on Monday said they will seek more than ₹1,323 crore in damages from SpiceJet and its chief Ajay Singh as well as challenge the recent Delhi High Court order in the ongoing dispute between the two sides.

On May 17, a division Bench of the court set aside a single judge Bench order that had upheld an arbitral award asking SpiceJet and its promoter Ajay Singh to refund ₹579 crore plus interest to Mr. Maran.

The Bench allowed the appeals filed by Mr. Singh and SpiceJet challenging the single judge’s order, passed on July 31, 2023, and remanded the matter back to the court concerned to consider the petitions challenging the arbitral award afresh.

Against this backdrop, Mr. Maran and his firm KAL Airways have decided to challenge the ruling after consultation with their legal counsel.

The decree holders — KAL Airways and Mr. Maran — “believe that the aforesaid judgement is deeply flawed and warrants further scrutiny”.

“In parallel, they are also seeking damages in excess of ₹1,323 crore, as determined by FTI Consulting LLP, United Kingdom, a globally renowned firm that specialises in estimation of losses arising out of breach of contractual commitments,” KAL Airways said in a statement on Monday.

Further, it said the claim for damages had originally been presented by KAL Airways and Mr. Maran before the arbitral tribunal and “has always remained an integral part of their quest for justice”.

By pursuing both the challenge to the Delhi High Court judgement and the claim for damages, the decree holders hope to secure a just and equitable resolution to the contentious dispute, the statement said.

The dispute arose due to a breach of trust by SpiceJet and has caused “enormous hardship to both KAL Airways and Kalanithi Maran for more than a decade,” it added.

According to the statement, they will pursue the execution of the arbitral award, seeking a refund of the pending dues amounting to ₹353.50 crore.

“This action is also in full compliance with, and supported by, the orders dated February 13, 2023, and July 7, 2023, passed by the Hon’ble Supreme Court directing that the award in favour of the decree holders is executed in its entirety,” it said.

On May 22, SpiceJet said it will seek a refund of ₹450 crore out of the total ₹730 crore paid to the airline’s former promoter Mr. Maran and KAL Airways following the Delhi High Court ruling.

The case dates back to early 2015, when Mr. Singh, who owned the airline earlier, bought it back from Mr. Maran after it was grounded for months due to resource crunch.

As part of the agreement, Mr. Maran and KAL Airways had claimed to have paid SpiceJet ₹679 crore for issuing warrants and preference shares.

However, Mr. Maran approached the Delhi High Court in 2017, alleging SpiceJet had not issued convertible warrants and preference shares nor returned the money.

Delhi/Bagdogra:

Several SpiceJet passengers faced inconvenience at the Bagdogra airport in West Bengal on Wednesday when they found that their luggage had been left behind in Delhi.

SpiceJet said the offloaded baggage would be connected through subsequent flights and regretted the inconvenience caused to passengers.

The matter came to light as a passenger, Rajesh Kumar, took to social media to highlight his plight.

“Today the flight SG8841 from Delhi to Bagdogra lost and misplaced our luggage and the staff had no response! They still do not have any resolutions,” Kumar, a resident of Noida, posted on X.

The 2.30-hour long direct flight took off from Terminal 3 of the Indira Gandhi International Airport in Delhi at 12.30 pm.

“On April 17, SpiceJet flight SG 8841 operating from Delhi to Bagdogra faced payload restrictions due to operational reasons, demanding some baggage to be offloaded from the aircraft,” an airline spokesperson said.

“The offloaded baggage will be connected through subsequent flights. In the interest of safe flight operations, cargo and baggage are offloaded when payload restrictions are faced,” the spokesperson said.

SpiceJet said it “deeply regrets” the inconvenience caused to the affected passengers. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A SpiceJet passenger aircraft taxis on the tarmac at Chhatrapati Shivaji International Airport in Mumbai.
| Photo Credit: REUTERS

SpiceJet on March 14 said it has finalised lease agreements for 10 planes as the no-frills airline looks to expand its capacity.

It has also received three airframes as part of recent settlement agreements.

An official in the know said the airline is also in talks with lessors regarding eight aircraft whose leases are expiring this month. Of these, the carrier is looking to retain at least six planes, the official added.

Besides, the official said two aircraft that were grounded are back in operation.

Currently, SpiceJet has more than 30 planes in its fleet. In a release on March 14, the airline said it has finalised lease agreements for 10 planes.

According to the release, it has received three airframes as part of recent settlement agreements and these have also resulted in savings of ₹685 crore for the airline. Airframe refers to an aircraft without engines.

Shares of SpiceJet rose 6% to ₹53.39 apiece in the morning trade on the BSE.

As part of SpiceJet’s strategic restructuring, several members of the commercial team have left the company, says airline spokesperson.
| Photo Credit: Reuters

SpiceJet on March 12 said several members of its commercial team have resigned with immediate effect, as part of a strategic restructuring at the airline.

On March 11, sources said the airline’s Chief Operating Officer Arun Kashyap and Chief Commercial Officer Shilpa Bhatia have put in their papers.

“As part of SpiceJet’s strategic restructuring, several members of the commercial team including the Chief Commercial Officer have left the company with immediate effect,” an airline spokesperson said in a statement on March 12.

With the recent fundraise, the spokesperson said it is speeding up the process of resolution of all past disputes, and continues to see significant growth in revenue and load factor.

Ajay Singh, Chairman of Indian low-cost carrier SpiceJet.
| Photo Credit: REUTERS

SpiceJet on March 7 said it has settled a dispute involving ₹413 crore with aircraft leasing firm Echelon Ireland Madison One Ltd, making it the third dispute settlement to be announced by the crisis-hit carrier in less than two weeks.

The latest settlement will result in savings of $48 million (₹398 crore), the airline said in a statement.

As part of the settlement of the ₹413-crore dispute, SpiceJet will acquire two airframes.

Generally, an airframe is an aircraft without engines.

The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are of Boeing 737 NG planes.

“These successful settlements have resulted in total savings of ₹685 crore for the airline,” the statement said.

On March 5, the airline announced a settlement with aircraft leasing firm Cross Ocean Partners with respect to a dispute of about $11.2 million (₹93 crore). As part of the arrangement, the airline will get an airframe and an engine.

Earlier, on February 28, SpiceJet said it has settled the $29.9-million (₹250 crore) dispute with Celestial Aviation.

On March 7, shares of the airline jumped 3.52% to ₹64.10 apiece in the morning trade on the BSE.

A reduction of 15% would mean around 1,350 people will lose their jobs in SpiceJet.
| Photo Credit: PTI

“Crisis-hit SpiceJet plans to hand out pink slips to at least 1,000 employees in the coming days as the airline works to significantly reduce costs and streamline operations of its depleted aircraft fleet,” officials said on February 12.

Faced with financial woes, legal battles and other headwinds, the no-frills carrier might ask more staff to leave as there is excess manpower now compared to the number of planes in service. A final decision on the quantum of layoffs is expected this week, one of the officials in the know said.

“The airline has around 9,000 employees and is now looking at reducing the strength by 10-15%,” the official said, adding that layoffs are necessary to reduce the overall costs and annual savings could be up to ₹100 crore. A reduction of 15% would mean around 1,350 people will lose their jobs.

The second official in the know said that layoffs are expected across departments and the final list is being prepared. “People from the management and consultancy are working on chalking out the contours of letting staff leave and all the departments have been asked to give their inputs,” the official added. There was no official comment from SpiceJet on the proposed job cuts.

The second official explained that the airline has stopped operations on certain RCS (Regional Connectivity Scheme) routes and at those stations, there is excess manpower, especially staff with lower salaries. “Relocating such people will be a challenge,” the official noted.

Currently, SpiceJet has a fleet of more 30 aircraft apart from 10 planes that are on wet lease. During a meeting with the airline’s senior officials last month, SpiceJet Chairman and Managing Director Ajay Singh emphasised the importance of judicious spending and that he will personally oversee all major expenditures.

The carrier will prioritise fleet upgrades, enhance on-time performance and cost-cutting measures will be implemented to streamline operations, according to an internal note last month.

SpiceJet, which has undergone multiple ownership changes since inception and is currently helmed by Ajay Singh, is in the process of raising funds from various investors.

On January 26, the carrier announced that it has received ₹744 crore as the first tranche of the total ₹2,250 crore proposed to be raised through the issuance of securities on a preferential basis. There were reports that there has been a delay in raising the requisite funds.

The airline has also availed funds worth around ₹1,000 crore under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and Singh has committed to infuse ₹500 crore.

In recent times, SpiceJet also witnessed lessors taking legal recourse to take back their leased aircraft due to non-payment of dues.

India is one of the world’s fastest growing civil aviation markets and the domestic air traffic is on an upward trajectory. However, SpiceJet has been struggling for sometime now. In 2023, the carrier flew 83.90 lakh passengers and had a domestic market share of 5.5%.

Representational image only.
| Photo Credit: Reuters

Shares of SpiceJet on September 15 climbed more than 4% after the company completed a payment of $1.5 million to global investment bank and financial services firm Credit Suisse. The stock gained 4.22% to ₹40 after a positive beginning on the Bombay Stock Exchange (BSE.)

SpiceJet has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse, according to a company statement on September 15. “The payment was executed on Thursday,” it added.

The Supreme Court had come down hard on SpiceJet chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to Credit Suisse AG.

The top court had asked Singh to pay $5,00,000 towards an instalment to the Swiss firm along with a $1 million defaulted amount.

In a statement on Tuesday, the airline said, “SpiceJet acknowledges the legal process and is committed to complying with all court’s directives and obligations in the Credit Suisse case and will make the payment of $1.5 million as per the court directive. Till date, SpiceJet has already paid a total of $8 million to Credit Suisse.” “SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current promoter taking over the company,” it had said.

According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.

Supreme Court threatens to throw SpiceJet CMD Ajay Singh into ‘Tihar jail’ over non-payment of dues to Swiss firm. | Representative Image |
| Photo Credit: SUSHIL KUMAR VERMA

The Supreme Court has come down hard on SpiceJet Chairman and Managing Director Ajay Singh, warning him he will be sent to Tihar jail for non-compliance with its order on making payment to global investment bank and financial services firm Credit Suisse AG.

The top court asked Singh to pay ₹5,00,000 towards an instalment to the Swiss firm along with ₹1 million defaulted amount.

“We have to move to the next drastic step. We are not worried even if you shut down,” a bench of Justices Vikram Nath and Ahsanuddin Amanullah observed.

Irked over the “dilly-dally business”, the bench told Mr. Singh that he will have to abide by the consent terms and warned, “We are not bothered even if you die. It is too much. We will send you to Tihar jail, if you do not pay.” The court’s fulmination came on Monday when it asked Mr. Singh and the company secretary of SpiceJet to be present during the hearings and make the payment. It posted the matter for further hearing on September 22.

In a statement, the airline said, “SpiceJet acknowledges the legal process and is committed to complying with all court’s directives and obligations in the Credit Suisse case and will make the payment of ₹1.5 million as per the court directive. Till date, SpiceJet has already paid a total of ₹8 million to Credit Suisse.”

“SpiceJet remains committed to the highest standards of transparency and legal compliance. This liability is an old one and predates the current promoter taking over the company,” it said.

According to the Swiss firm, SpiceJet had availed the services of SR Technics, Switzerland, for maintenance, repair, and overhaul of aircraft engines, modules, components, assemblies, and parts, which were mandatory for its operations.

An agreement for such services was entered into between SpiceJet and SR Technics on November 24, 2011 for 10 years. The terms of payments were also agreed upon.

SR Technics had given Credit Suisse the right to receive payments from SpiceJet for the services.

The apex court had on July 25 given additional time to SpiceJet to make the payment to Credit Suisse as per the consent terms agreed upon by the two parties.

The top court was hearing a plea by the Swiss firm seeking initiation of contempt proceedings against Singh and SpiceJet over “a wilful and intentional disobedience” of court orders and failure to pay dues as per a settlement between the two sides.

On August 14, the bench while issuing contempt notices to Mr. Singh and SpiceJet had noted the submission of the Swiss firm that the apex court had granted indulgence and withdrawn the airline from liquidation only in view of the consent terms dated May 23, 2022 by which ₹500,000 was to be paid every month by the low-cost carrier to the company from July 15, 2020.

“It was submitted that, though as of now more than 6.5 million U.S. dollars has to be deposited, but only a little over 2 million U.S. dollars has been deposited,” the bench had noted the submission of counsel appearing for Credit Suisse in its August 14 order.

SpiceJet and Credit Suisse had told the Supreme Court on August 18, 2022 about the resolution of their financial dispute which led to the withdrawal of an appeal by the low-cost airline against a Madras High Court order for its winding up due to alleged non-payment of dues to the Swiss firm.

“There is a settlement which has taken place on May 23, 2022, as per the consent terms. In view of it, both the parties are satisfied with the settlement and want to withdraw the SLP (special leave petition) filed by the petitioner.

“Accordingly, the application is allowed,” the top court had said in its order.

The had directed the parties to abide by the consent terms.

On the appeal of SpiceJet, the top court had on January 28, 2022 stayed the publication of the winding up notice and the order directing the official liquidator attached to the Madras High Court to take over the assets of the low-cost airline.

It had also asked SpiceJet to resolve the financial dispute with the Swiss firm.

New Delhi:

SpiceJet has completed the payment of Rs 100 crore to Kal Airways Private Limited, the airline confirmed in a statement today. While a payment of Rs 77.5 crore had been made to Kal Airways till September 11, the remaining Rs 22.5 crore was paid on Tuesday.

The Delhi High Court on Monday had directed Spicejet and its chairman and managing director (CMD), Ajay Singh, to make an RTGS transfer before 4 pm on Tuesday while hearing a plea moved by Kal Airways stating that the order passed by the Court was not being complied with.

They had only paid 62.5 crore to Kal Airways and Kalanithi Maran on September 8 and the amount of 37.5 crore was still remaining, stated the Senior Advocate who appeared for Kal Airways.

Delhi High Court’s Order To SpiceJet

Earlier, the Delhi High Court had ordered Spicejet to pay Rs 100 Crore by September 10.

Maninder Singh, senior advocate, instructed by Nandini Gore. senior partner; Sonia Nigam, principal associate and Yash Dubey, and Akarsh Sharma, associate advocates from Karanjawala & Co; appeared on behalf of Kal Airways Pvt. Ltd. and Kalanithi Maran and Amit Sibal, a senior advocate appeared on behalf of Spicejet Ltd. and Ajay Singh in the matter.

The division bench of the Delhi High Court recently refused to stay a single bench order upholding the arbitral tribunal’s order directing SpiceJet and its chairman and managing director to refund over Rs 270 crore to Sun Group promoter Kalanithi Maran and Kal Airways.

Meanwhile, the division bench had issued notice on the appeal challenging the single bench order.

The bench of Justice Yashwant Varma and Justice Dharmesh Sharma while issuing a notice to the Sun Group promoter and Kal Airways on appeal while refusing to stay on the order passed by the single judge bench of Justice Chander Dhari Singh on July 31, 2023.

SpiceJet and its CMD had filed an appeal before the division bench of Delhi High Court challenging a single judge’s order directing them to refund over Rs 270 crore to Kalanithi Maran and Kal Airways.

The bench of Justice Chandra Dhari Singh on July 31 while pronouncing the judgment in Section 34 petition moved by the parties, affirmed the Arbitral Award dated 20.07.2018 passed by an Arbitral Tribunal comprising 3 retired Supreme Court Judges in favour of Kal Airways and Kalanithi Maran.

The Arbitral Award directed that Decree Holders  — Kal Airways and Kalanithi Maran — were entitled to a refund of Rs.308 crores towards the Warrants and a refund of the amount of Rs.270 crores towards Cumulative Redeemable Preference Shares (CRPS).

Further, Kal Airways and Kalanithi Maran were also awarded an interest of 12 per cent towards Pendente lite and another 18 per cent from the last date of the due date in terms of the Arbitral Award in case the payments, as directed to be made by Spicejet and Ajay Singh, is not made within two months from the date of award.

Spicejet and Ajay Singh had filed section 34 Petitions challenging the Arbitral Award, and the direction of a refund to the tune of Rs 270 crores to Kal Airways and Kalanithi Maran, and praying that it be set aside.

Spicejet and Ajay Singh had further sought the setting aside of the award seeking a waiver of 12 per cent interest towards warrants as well as setting aside the interest of 18 per cent granted under the award on both warrants and CRPS.

Kal Airways and Kalanithi Maran also filed Section 34 Petition seeking setting aside of award to the extent no interest was granted on the amount of Rs 270 crores, as well as damages for non-issuance of Warrants and CRPS.