SpiceJet says fleet restoration plan on track

SpiceJet is making steady progress in ungrounding its fleet, the airline has said as it continues to settle payment disputes with aircraft and engine lessors.

“SpiceJet’s return to service programme is firmly on track. We are making steady progress ungrounding our fleet. We are working with original equipment manufacturers (OEMs) and maintenance repair and overhaul units (MRO) partners to restore B737 NG, B737 Max and Q400 aircraft,” an airline spokesperson said. 

On Thursday SpiceJet announced a settlement of its dispute with Willis Lease Finance Corporation. The engine lessor has also withdrawn it’s insolvency plea against the airline.

These actions follow the ₹3000 crore fund raise last September and the recent ₹294 crore infusion by promoter Ajay Singh. Proceeds from fund raise have been used to clear statutory dues and make vendor payments.

Although there are signs of recovery, challenge for SpiceJet is daunting.

As of Q3 FY 2025, the airline was operating 28 aircraft. This includes wet leased planes some of which are due to return to lessors in summer. SpiceJet’s own fleet comprises 50 planes and of them 19 are operational.

Directorate General of Civil Aviation data shows it has planned 25 per cent fewer flights this summer compared to last year indicating continued challenges with its fleet. The planned flights in summer (1240 per week) are also 4.4 per cent lower compared to the preceding winter season.

In contrast rival airlines – Akasa Air and Air India Express have planned for 20 per cent and 38 per cent increase in summer schedule on a year on year basis. Also both these airlines have a younger fleet compared to SpiceJet giving them better efficiency in operations.

At present SpiceJet is operating only one fuel efficient Boeing 737 Max aircraft whereas the entire operating fleet of 27 planes of Akasa Air comprises of these 737 Max variant.

Asked about cost challenges, SpiceJet said rupee  depreciation undeniably impacts airlines, with 35-50 per cent of our costs – like aircraft leases, fuel, and maintenance – pegged to the US dollar. “At SpiceJet, we are managing this challenge through a blend of financial discipline, operational efficiency, and strategic growth,” the spokesperson said.

SpiceJet said it is targeting domestic leisure hotspots and underserved routes besides making a renewed push into international markets such as Saudi Arabia. The airline has planned flights to Jeddah from Ahmedabad, Kozhikode and Mumbai in summer marking a return to the market.

It is adding three domestic destinations – Dehradun, Porbandar and Tuticorin and launching new routes like Ahmedabad-Srinagar and Pune – Varanasi.

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