SpiceJet banned from using Bangladesh airspace over dues non-payment; flying time to increase due to detours

Spicejet banned from using Bangladesh airspace

• SpiceJet barred from Bangladeshi airspace over unpaid fees
• Flights rerouted, adding 30 minutes and raising fuel costs
• Airline says operations continue and talks are ongoing

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SpiceJet has been barred from using Bangladeshi airspace after allegedly failing to clear outstanding air navigation charges, according to people familiar with the matter. The restriction has compelled the low-cost carrier to reroute certain flights to Northeast India, particularly those operating via Kolkata, adding nearly 30 minutes to flying time, the Economic Times reported.

The move by the Bangladesh government is expected to raise fuel costs for the airline, which is already grappling with financial stress. Airlines are required to pay overflight fees to countries whose airspace they use, whether for transit or landing. These charges depend on factors such as aircraft weight and flight duration. For a Boeing 737 aircraft, commonly operated by SpiceJet, the fee is estimated to be around $300 per flight.

Sources said the airline has defaulted on payments for more than six months, prompting the Civil Aviation Authority of Bangladesh to suspend its overflight permissions. The regulator is also reportedly seeking interest on the delayed dues.

Responding to queries, a SpiceJet spokesperson said the airline is engaged with Bangladeshi authorities on the matter. “These are routine industry issues, and we are working constructively towards an early resolution,” the spokesperson said. “Our flight operations remain unaffected, and we continue to operate our scheduled services in line with regulatory requirements.”

A spokesperson for the Civil Aviation Authority of Bangladesh did not respond to requests for comment.

The development comes at a time when SpiceJet continues to face financial challenges despite raising Rs 3,000 crore in 2024. The airline had planned to use the funds to reactivate grounded aircraft, but more than half of its fleet remains out of service.

As of the end of December, the carrier was operating around 33 aircraft, including 16 inducted on short term wet lease. This helped it expand its market share to 4.3 percent in December from 2.6 percent in October.

A significant portion of the fresh capital was used to clear pending statutory liabilities such as goods and services tax and tax deducted at source.

The airline is also seeking to expand its fleet through additional wet lease arrangements, including four Boeing 737 Max aircraft expected to join by May. It aims to scale up its fleet to 60 aircraft by December 2026.

For the December quarter, SpiceJet reported a consolidated net loss of Rs 261.7 crore, compared with a net profit of Rs 20.2 crore in the corresponding period a year earlier.

Chairman Ajay Singh recently acknowledged the pressure on costs but expressed optimism about the airline’s trajectory. “With more aircraft in service, a sharper network focus and continued balance sheet repair, we are building a more resilient airline, step by step," he said recently.