SpiceJet expands fleet ahead of winter rush, inducts five leased Boeing 737s

SpiceJet

In a bid to boost its fleet capacity ahead of the busy winter season, domestic carrier SpiceJet has taken delivery of five leased Boeing 737s (including 3 737 MAX aircraft) on November 1.

"Today's induction comes shortly after the introduction of three leased Boeing 737s (including 1 737 MAX), reinforcing SpiceJet's determination to expand and diversify its flight services," the airline said in a statement.

SpiceJet has also launched a festive sale offering a flat 10 percent discount on flight tickets on October 31.

Travellers can book flights and enter the coupon code ‘FESTIVE’ in checkout to avail of the flat discount.

The discount is available on travel bookings made between October 20 and November 24, until 11:59 pm. It is applicable on tickets booked for travel for the dates November 1 to March 30, 2024.

However, it should be noted that currently nearly half of SpiceJet's fleet is grounded due to the legal battles it has been embroiled in. Of its B737 fleet, at least three aircraft are in the process of being repossessed due to default in lease payments.

According to ch-aviation data, SpiceJet currently has 25 inactive aircraft or 42 percent of its 60-strong fleet.

The inactive aircraft include two B737-700s, two B737-300(BDSF)s, four B737-800s, two B737-900ERs, and twelve DHC-8-Q400s.

Nonetheless, SpiceJet's capacity has increased in recent months. After slipping down the ladder to become India's sixth largest airline (based on market share) over the 2023 summer season, it has recently regained some ground, overtaking Akasa Air to become India's fifth largest carrier with a 4.4 percent market share.

The domestic low-cost carrier has been embroiled in a number of legal battles. Aircraft lessors Aircastle and Wilmington have filed insolvency pleas against SpiceJet over unpaid dues. SpiceJet has challenged the maintainability of these petitions on technical grounds.

The cases are now likely to come up for hearing on November 7 for further consideration.

Early this September, SpiceJet completed the payment of Rs 100 crore to former promoter Kalanithi Maran's KAL Airways.

One of the Boeing 737 (VT-SXE) which is being leased to SpiceJet is coming from Jet Airways and was used by the latter to conduct proving flights by Jet-II Airways on May 15 and 17, 2022.

The almost 17-year-old aircraft flew with Jet Airways in 2007 — then in its prime — for over a decade. After Jet collapsed in April 2019, the aircraft was among the several others leased by SpiceJet.

The VT-SXE was the only airworthy aircraft with Jet-II. The airline’s licence has lapsed and creditors want the company to be wound up.

The National Company Law Tribunal had recently asked the carrier’s monitoring committee to initiate the sale of three Boeing 777s.