SpiceJet cuts planned flight operations by 20% as it struggles to add pilots, planes

"In September 2023 our operational fleet was 32 which has increased to 39 in March 2024," an airline spokesperson said.

SpiceJet added that "in line with our commitment to providing seamless connectivity and enhanced services, SpiceJet is set to induct ten aircraft to bolster capacity during the upcoming busy summer schedule and beyond. Additionally, we will introduce two A340 wide-body aircraft specifically for Haj operations."

The airline has approved flying 1,657 weekly flights as part of the upcoming summer schedule -- down from 2,240 planned flights it had applied for in the ongoing winter schedule and 2,132 planned flights it had applied for in the last summer schedule.

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Last year as well, SpiceJet had applied for 30 percent fewer planned flights when compared to the summer schedule of 2022.

By July 2023, the Director General of Civil Aviation (DGCA) had instructed the airline to operate only 50 percent of its planned flights after the airline reported at least eight incidents of technical malfunction between June 19, 2023, and July 5, 2023.

"Despite applying for higher planned flights as part of the winter schedule, SpiceJet could not operate all flights, and has hence cut planned flights as part of the upcoming summer schedule to avoid non-utilisation of airport slots," a senior company executive said.

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He added that the airline has plans to increase capacity but increasing competition for pilots and rising aircraft lease fare in the country are major roadblocks .

"SpiceJet has a fleet of 33 operational aircraft, including eight wet-leased planes and around 400 pilots on its payrolls at the moment. Once the new FDTL (Flight Duty Time Limitations) norms kick in from June, an additional 60 to 90 pilots will be needed to operate the same number of flights, as per the winter schedule," the executive said.

At the moment, there is a dearth of Boeing-737 certified pilots in the domestic market, the executive said.

"Airlines like Akasa Air and Air India's LCC (Air India Express also known as AIX Connect) are poaching and overhiring Boeing pilots, making it difficult for SpiceJet to add to its talent pool," a second executive aware of the ongoing discussions at the airline said.

He said SpiceJet was forced to reduce its planned flying capacity to avoid any further scrutiny by the DGCA.

Last month, SpiceJet announced that it is set to lay off 1,400 employees, nearly 15 percent of its workforce, to cut costs and retain investor interest.

SpiceJet is also struggling to add aircraft to its fleet after the collapse of Go First Airlines, and the Aviation Working Group (AWG), in December 2023, downgrading India's lessor rating to "negative" from "positive".

The AWG downgraded India's rating after lessors could not get back their aircraft from Wadia group's grounded airline Go First, which declared bankruptcy seven months ago -- in May 2023.

"The secondary leasing market has become very expensive for Indian airlines and finding good deals in the current environment has become very difficult, and thus capacity addition is minimum," the second executive said.

He added that wet-leasing aircraft from airlines in countries where domestic traffic hasn't quite picked up so far is the most feasible way for Indian airlines to add aircraft from the secondary market.

In January, SpiceJet tried to raise funds via the issuance of shares and debentures and tried to raise about Rs 2,250 crore. However, the fundraiser is stuck with only one-third of the money arriving in the bank.

The airline has had to wet-lease aircraft to keep its capacity going while its aircraft are grounded or, in many cases, stuck in litigation with lessors wanting their planes or engines back.

There is also ongoing litigation with the previous owners of the airline, the Marans. A substantial amount of money is due to be paid to them as per a court order.

At its peak in 2019, SpiceJet had a fleet of 118 planes and 16,000 employees.

However, the airline has fallen from its great heights and now has a market share of 4 percent, with its nearest rival, in terms of market share being Akasa Air, which has 3,500 employees for a fleet of 23 planes.