Summary
- SpiceJet has reduced its summer schedule because it struggles to rent more pilots and add more planes.
- The airline is being cautious about non-utilization of airport slots and scrutiny from the aviation regulator.
- Still, SpiceJet has managed to finalize the lease agreements for brand spanking new aircraft and is working on stabilizing funds.
Indian low-cost carrier SpiceJet is being mindful while planning its summer schedule because it faces a tough market to hunt for brand spanking new planes and Boeing 737 pilots. The airline has been attempting to stabilize its funds and operations after a number of difficult years but remains to be significantly behind its peak capability before COVID-19.
Tricky situation
SpiceJet’s weekly schedule for this 12 months’s summer season includes 1,657 approved flights. That is down from 2,240 flights it had planned for the previous winter season and a couple of,132 flights for the 2023 summer season.
A senior executive from the airline told Moneycontrol that SpiceJet couldn’t operate all flights it had planned for the winter schedule and desired to avoid non-utilization of airport slots this time around. The airline is doing its best to stop any more scrutiny from India’s aviation regulator, the DGCA.
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But certainly one of the fundamental reasons SpiceJet cannot increase flight capability is the change in flight duty time limitations for pilots and the non-availability of trained Boeing 737 pilots available in the market currently. Moneycontrol quotes the chief as saying,
One other executive aware of the matter added that the market has turn into highly competitive for 737 pilots currently, especially with carriers like Akasa Air and Air India Express (each operate 737 planes) also attracting the talent pool.
With the collapse of Go First and all the difficulty its aircraft lessors have faced within the last 12 months, India’s rating within the leasing market has also been affected. As such, SpiceJet can also be finding it difficult to amass latest planes for good deals.
Finalizing lease agreement for 10 aircraft
The airline, nevertheless, will still boost fleet capability in the approaching months and has finalized lease agreements for 10 aircraft. It has already received three airframes as a part of recent settlement agreements with key aircraft lessors.
On March 7, SpiceJet announced the successful resolution of a $49.8 million dispute with Echelon Ireland Madison One Ltd. This helped save $48 million for the airline and the acquisition of two aircraft. It also resolved an $11.2 million dispute with aircraft leasing firm Cross Ocean Partners, leading to the transfer of an airframe and an engine to the airline.
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Moreover, SpiceJet has also finalized a wet lease agreement for 2 Airbus A340 aircraft for the upcoming Hajj operations. The airline plays a key role in Hajj operations annually and can deploy two widebodies from Srinagar and Guwahati in 2024.
Recent developments
SpiceJet is attempting to stabilize its funds and settle disputes with lenders and lessors for smooth future operations. Recently, Credit Suisse, with which SpiceJet had a long-standing financial dispute, said that the airline has cleared all its outstanding dues and isn’t any longer in default.
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The airline has also been raising funds from investors and has been reducing its workforce to take care of the investors’ interest. It was reported last month that around 1,400 SpiceJet employees would lose their jobs.
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