The pay package of SpiceJet Managing Director and Chairman has hit a three-year high. Ajay Singh is the current Managing Director of SpiceJet. Despite an ordinary performance, a company executive getting this much salary does not make sense, that too at a time when they employees are not being paid properly.
Pay Package of SpiceJet Chairman Gets Boost
The Chairman and Managing Director of SpiceJet, Ajay Singh received a salary of Rs 6 crore in Financial Year FY2023. This pay package is the highest since the pandemic period. During this time, the airline has suffered huge losses.
Apart from this salary, the Managing Director received an outstanding remuneration for Financial Year 2022. He was paid Rs 1.8 crore as financial remuneration. Combining this payment with salary, he received a total of around Rs 8 crore in a single year. If we compare this data, this is the highest pay package since FY 2018.
Under the leadership of Ajay Singh, the airline has managed to increase its revenue but was unable to post profitable quarters. There were few quarters since the pandemic that the airline posted profits. In terms of current airline operations, the profit generated by the airline was negligible.
Under the command of Ajay Singh, the airline managed to uplift its revenue to Rs 8,869 crore. Compared to the pre-pandemic level, this registered a growth of 35 percent. However, this can be termed as an inflated growth because these financials had no contribution from the airline’s profit. The money was pumped from the promoters.
Under the command of Ajay Singh, SpiceJet recorded two back-to-back highest losses. In FY22, the airline lost Rs 1,725 crore. In FY23, it posted the second-highest loss of Rs 935 crore. The airline fleet has fallen down from 76 in 2019 to 55 right now.
Out of these 55 as well, there are many aircraft on the ground. In the June quarter, the airline returned back to profit. Whether small, it was a profitable quarter. In September, it was again red. December quarter results will be revealed soon.
There is a trend that SpiceJet never reveals its financial results on time. For the past 2-3 quarters, the airline has always delayed its quarter results. The most famous excuse is the incapacitation of an audit member, meaning a delay in declaring financial results because of an unhealthy audit member.
According to its most recent annual report, SpiceJet’s net worth at the end of FY23 was negative Rs 3,232 crore, down from negative Rs 4,288 crore at the end of FY22. All thanks to Rs 500 crore funding by Ajay Singh in August 2023 and the differentiation of cargo arm: SpiceXpress.
On January 10th, SpiceJet concluded its 39th Annual General Meeting (AGM). The airline in December received approval for raising Rs 2,250 crore by issuing equity warrants and shares to around 63 companies.
After the conclusion of the AGM, Ajay Singh said that a significant amount of funding would be used to bring back 25 aircraft to operational status. With this, the airline will be able to add more destinations on the network, alongside increasing frequencies on current routes.
SpiceJet has already announced its plans to start flights to Ayodhya Maharishi Valmiki International Airport and Lakshadweep Islands. The airline claims that it has exclusive rights to fly to Lakshadweep. These rights were awarded to the airline under the bidding of UDAN 5.0. On January 21, the airline will operate its maiden flight to Ayodhya Airport, with an aim to mitigate demand due to the Lord Rama Consecration Ceremony in Ayodhya.
Source: Financial Express