Lease agreement for 10 aircrafts finalized by Spice Jet

SpiceJet is currently operating about 1,362 flights per week, which is 16 per cent fewer services than a year ago.
Lease agreement for 10 aircrafts finalized by Spice Jet

SpiceJet, a budget airline, announced its plan to lease 10 aircraft to grow its fleet before the busy summer season. In aviation, the summer schedule starts from the last Sunday in March and ends on the last Sunday in October. As of February 27, SpiceJet had 33 operational planes and 22 grounded ones, according to Cirium, an aviation analytics firm. Currently, the airline operates about 1,362 flights per week, which is 16% less than last year.

Facing financial difficulties for several quarters, SpiceJet is entangled in multiple court cases over debts owed to former owner Kalanithi Maran, financial services firm Credit Suisse, aircraft lessors, and engine lessors. In December, aviation consultancy firm CAPA India suggested that SpiceJet's recovery, once it secures new funding, could disrupt the Indian aviation market in 2024. The airline plans to bring back its grounded aircraft and lease additional planes for competitive edge.

In January, SpiceJet received the first tranche of Rs 744 crore investment, followed by another tranche of Rs 316 crore on February 22 through preferential issue of equity and warrants. Recently, the airline's Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia resigned. SpiceJet is also reducing its workforce by about 15% to cut costs.

On January 11, the shareholders approved raising Rs 2,241.5 crore by issuing equity and warrants. Of this, Rs 1,591.5 crore will be raised by issuing equity to 58 entities, while Rs 650 crore will be raised by issuing warrants on a preferential basis to five entities.