 "SpiceJet")
Shares of budget airline SpiceJet tumbled 9.8 per cent to Rs 54.60 per share on the BSE in Tuesday's intraday trade amid report that two senior executives have tendered resignation.
According to a Business Standard report, the low-cost airline's Chief Operating Officer (COO) Arun Kashyap, and Chief Commercial Officer (CCO) Shilpa Bhatia have resigned from the airline and are currently serving their notice period.
Meanwhile, according to a IANS report, the top executives were asked to put in papers after it surfaced that they were planning to enter in the aviation charter plane business through their spouses.
Meenakshi Kashyap, wife of Arun Kashyap, and Ajay Bhatia, husband of Shlipa Bhatia, had in August 2023 incorporated a company named Sirius India Airlines Private Limited. Back then, SpiceJet had said Sirius India Airlines will carry out any future activity only with the consent of SpiceJet.
SpiceJet, on its part, said several members of its commercial team have resigned with immediate effect, as part of a strategic restructuring at the airline.
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"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," the airline's spokesperson said on Tuesday.
With the recent fundraise, the airline is speeding up the process of resolution of all past disputes, and continues to see significant growth in revenue and load factor, the statement added.
At 2:00 PM, shares of the airline were quoting 7 per cent lower at Rs 56.34 per share as against 0.4 per cent rise in the benchmark S&P BSE Sensex.
SpiceJet, recently, resolved its disputes with Echelon Ireland Madison One Ltd, Cross Ocean Partners, and Celestial Aviation.
"This settlement not only underscores our commitment to financial prudence but also enables us to further fortify our fleet with the acquisition of two airframes," Ajay Singh, chairman and managing director of SpiceJet said.
Besides, the airline's resolution of a claim worth a $29.9 million (Rs 250 crore) with Celestial Aviation on February 28, resulted in savings of Rs 235 crore. Additionally, its dispute with Cross Ocean Partners (worth approximately $11.2 million or Rs 93 crore) led to acquiring an airframe and engine at no additional cost. This also ceased prolonged, expensive litigation that the airlines was undergoing.
