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Spicejet is likely to induct 7 Boeing 737 Max aircraft on wet lease by November-end for the winter schedule. The airline may operate fewer flights in the winter schedule than it did in the summer schedule.
According to a person in the know, two aircraft are likely to be inducted by October-end, and the rest by the end of November. Spicejet has been facing severe headwinds. In the past few months, at least six aircraft have been deregistered. The person explained that these aircraft were being wet-leased in order to balance out the aircraft that have been deregistered.
The no-frills carrier has also faced technical snags over the past few months. In July, the Directorate General of Civil Aviation (DGCA) asked SpiceJet to operate at up to 50 per cent of the number of flight departures approved under the summer schedule 2022 till October 29, 2022.
SpiceJet got approval to operate 600 daily flights for the summer schedule, of which it operated approximately 300 flights. The source said, “SpiceJet will operate fewer daily flights than the summer schedule.”
It announced that it will send 80 pilots (combined number) on leave without pay from its pool of pilots that operate their Boeing 737 fleet and Dash 400 aircraft. This will be done for a period of three months, and ostensibly, to reduce costs for the airline.
Cash crunch
SpiceJet has been facing acute cash crunch for the past several quarters. It posted a net loss of ₹789 crorein Q1 FY23. SpiceJet has been a benefactor of the Emergency Credit Line Guarantee Scheme (ECLGS). It availed ₹200 crore and ₹400 crore respectively.
Earlier this month, the Department of Financial Services modified the ECLGS to raise the maximum loan amount eligibility for airlines under ECLGS 3.0 to 100 per cent of their funds based on the non-fund-based loan outstanding as on the reference date or ₹1,500 crore, whichever is lower. Of the Rs 1,500 crore, one-third (or ₹500 crore) will be considered based on equity contribution by the owners.
This is the third round where the government has extended help to the airlines as well. Sources have said that SpiceJet has applied to avail benefits from the scheme in this round. “The promoters are in the process of arranging the equity for the same,” the person said, requesting anonymity.
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