SpiceJet finalises lease agreement for 10 aircraft to boost capacity

SpiceJet is currently operating about 1,362 flights per week, which is 16 per cent fewer services than a year ago, Cirium's data stated.

Budget carrier SpiceJet on Thursday said it is planning to lease 10 aircraft to expand its fleet ahead of the busy summer season. In aviation, the summer schedule begins on the last Sunday in March and ends on the last Sunday in October.

As on February 27, SpiceJet had a total of 33 operational aircraft and 22 grounded planes in its fleet, according to aviation analytics firm Cirium. The carrier is currently operating about 1,362 flights per week, which is 16 per cent fewer services than a year ago, Cirium's data stated.

SpiceJet has been facing a cash crunch for the past several quarters. It is also dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, financial services firm Credit Suisse, aircraft lessors, and engine lessors.

Aviation consultancy firm 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 in 2024 as the airline will bring its grounded aircraft back to service and lease as many planes as possible to be competitively relevant.

On January 11, the beleaguered airline’s shareholders gave their approval to raise a total of Rs 2,241.5 crore through the issuance of equity and warrants -- Rs 1,591.5 crore by issuing equity to 58 entities and Rs 650 crore by issuing warrants on a preferential basis to five other entities.

On January 26, the first tranche of Rs 744 crore was infused in the airline. SpiceJet had on February 22 raised a second tranche of Rs 316 crore under the preferential issue of equity and warrants.

SpiceJet’s Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia recently resigned from the airline. The carrier is cutting its workforce by about 15 per cent to reduce its costs.

“SpiceJet has finalised lease agreements for 10 aircraft as part of its efforts to augment capacity in preparation for the upcoming summer schedule,” its statement said on Thursday.

In the last two months, the airline has settled its matters with three aircraft lessors --Echelon Ireland Madison One, Cross Ocean Partners and Celestial Aviation. “These settlements with key aircraft lessors have also resulted in savings of Rs 685 crore for the airline,” the carrier noted.