SpiceJet has halted its flight operations from Chennai since early July,primarily due to a significant reduction in its fleet size. airline, which previously operated 12 daily flights from the city, plans to resume services in October as it works to rebuild its aircraft availability.
Currently,SpiceJet's operational fleet has dwindled to approximately 12-13 aircraft, down from over 30 just months ago. This decline has forced the airline to suspend flights not only from Chennai but also from other destinations,including Guwahati and Varanasi. The airline's overall flight schedule has seen a drastic cut, with a reported 44% reduction in flights during July compared to April .
Data from the Directorate General of Civil Aviation (DGCA) reveals a sharp drop in SpiceJet's scheduled departures, plummeting from 4,812 in January to 2,956 in May. The airline's struggles have been compounded by the return of leased aircraft to their owners, rising aviation turbine fuel prices,and a depreciating rupee, all of which have intensified its financial difficulties.
Passenger complaints have surged as SpiceJet continues to sell more tickets than it can accommodate, leading to numerous flight cancellations and delays. Concerns have been raised regarding the lack of regulatory action from the DGCA and Ministry of Civil Aviation in addressing these issues.
“Some of our aircraft are currently undergoing scheduled maintenance, including routine checks and C-Checks, in line with the seasonal reduction in demand,” a SpiceJet spokesperson stated. “We expect three aircraft to join in July, followed by two in August upon completion of their maintenance checks, and a further two aircraft each in September and October.”
In addition to the maintenance plans,SpiceJet aims to lease 10 new aircraft in October and November to support its capacity expansion ahead of busy travel season. However,the airline's financial woes have persisted,affecting employee salaries and leading to delays in provident fund contributions. Internal communications have indicated that payments to lessors take precedence, causing unrest among staff.
The airline's financial strain has drawn regulatory attention. On September 16, the Economic Offences Wing (EOW) of the Delhi Police initiated a case against SpiceJet's Managing Director, Ajay Singh,and other executives over allegations of cheating and conspiracy related to unpaid provident fund dues. This case arose from a complaint by the Employees’ Provident Fund Organisation (EPFO),which accused airline of failing to remit over ₹65.7 crore in employee contributions.
In response to the ongoing challenges faced by airlines like SpiceJet,the Union Cabinet approved the Emergency ist carriers grappling with liquidity issues stemming from high fuel prices and disruptions linked to West Asia conflict. Under this scheme, eligible airlines,including SpiceJet, can access government-backed loans of up to ₹1,500 crore .
Despite raising ₹3,000 crore through an oversubscribed Qualified Institutional Placement (QIP) in September 2024,followed by an additional ₹736 crore from previous funding,SpiceJet's financial situation remains precarious. The funds were intended for reviving grounded aircraft, settling liabilities, and bolstering working capital. However, the airline continues to face liquidity pressures due to legacy debts, lease obligations, and increasing operational costs.
Additionally, various aircraft and engine lessors have initiated insolvency proceedings against SpiceJet over unpaid dues, highlighting the airline's ongoing financial distress. While some legal actions have been resolved, situation underscores the significant challenges facing the carrier as it attempts to stabilize its operations.
