Shares of SpiceJet jumped on June 8 morning after the low-cost airline said it will partner with FTAI Aviation, a leading aftermarket provider of engine services, to reduce maintenance expenses and aircraft downtime.
The NYSE-listed FTAI Aviation will provide SpiceJet with up to 20 engines for lease, inclusive of maintenance services, the Guurgam-based airline said. By leveraging FTAI Aviation's engine expertise, SpiceJet will have access to a pipeline of available engines which eliminates the need for frequent shop visits.
“The revitalisation programme will reduce maintenance expenses and minimise aircraft downtime, enhancing the airline's overall performance,” SpiceJet said in a release.
At 9.48 am, the stock was trading up about 4 percent at Rs 27.80 on BSE. The stock has declined 41 percent in the last year as the airline faces a cash crunch, legal battles and regulatory headwinds.
The first engines will be used to support the reactivation of SpiceJet's aircraft fleet over the next two-three months and will be critical for service on new routes.
“SpiceJet is slowly but surely progressing towards its goal of restoring its fleet and ensuring that our aircraft stay where they rightly belong to i.e. in the skies serving our passengers,” Chairman and Managing Director Ajay Singh said.
The partnership with FTAI Aviation is a step in that direction that would ensure that the fleet is up and running at all times without worries about engines or their maintenance.
"Quick and ready replacements will ensure that our planes are on the ground for minimal time,” Singh said.Catch all the market action on our live blog
On June 7, SpiceJet commenced Haj operations by operating special flights from Bhopal, Gaya, Vijayawada, Aurangabad and Srinagar.
The airline has inducted two wide-body A340 aircraft for its Haj operations. SpiceJet will operate these special flights to Jeddah between June 7 and June 22. Return flights from Medina are also scheduled from July 17 to August 2.
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