SpiceJet cancels Chennai flights till June 10, cites 'operational reasons'

Cash-strapped SpiceJet airline on Monday stated that it has suspended operations at Chennai airport until June 10 "due to operational reasons."

The airline was scheduled to operate 43 flights per week to three cities—Delhi, Ayodhya, and Shirdi—in June to and from the Chennai airport, according to aviation analytics firm Cirium.

Sources said that the airline has cancelled a total of about 60 flights until June 10 to and from the Chennai airport due to the aforementioned suspension.

"SpiceJet has temporarily suspended operations at Chennai airport until June 10 due to operational reasons. Our flights to Delhi, Ayodhya, and Shirdi will resume from Chennai starting June 11. Passengers were notified as early as the second week of May to avoid any inconvenience," the airline's spokesperson told Business Standard.

For the last several quarters, SpiceJet has been grappling with a cash crunch amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors, lenders, and former promoter Kalanithi Maran.

Aviation analysts expect the airline's prospects to brighten once the fresh funding of Rs 2,241 crore approved by shareholders earlier this year is fully in place. SpiceJet has raised around Rs 1,060 crore through two tranches of a preferential equity issue.

Aviation consultancy CAPA India had in December stated that SpiceJet's resurgence, once the new funding is in place, has the potential to disrupt the Indian aviation market as the airline will bring its grounded aircraft back into service and lease more planes to regain competitive relevance.