Low-cost airline SpiceJet is understood to be in talks with some of its key vendors, including aircraft maker Bombardier, to rework their contracts to get better terms.

The airline management is also considering a move to offer ESOPs to employees to retain them as well as to lure back pilots.

A SpiceJet spokesperson declined to comment in response to a detailed questionnaire sent to the airline.

The airline’s co-founder Ajay Singh is learnt to have gone through each of the key contracts and now wants them renegotiated, sources in the airline told BusinessLine . Some of the decisions taken by the old management were under scrutiny.

Singh is understood to have informed his pilots during a recent meeting with them that while he was never a great supporter of Bombardier Q400s, it was now important to arrive at a good deal with the Canadian aircraft maker. He said that these aircraft need to become profitable. They were not performing well because of some maintenance issues.

Hence it was important to rewrite the contracts which favour the airline, something Bombardier might agree with given that it may not want to lose a big customer like SpiceJet. It will help them to keep Bombardier on a longer term and also expand its fleet.

However, in case the Bombardier fleet has to be scrapped, the airline will take the responsibility to retrain and upgrade the second officers to fly Boeings. He assured them that no new employee will be inducted without giving a chance to internal candidates.

He also said that the airline never recovered from some of the commercial decisions made in 2013. Singh also assured the pilots that the current management will not hesitate to raise capital as and when required.

Singh said the airline has now been given the permission to open for future bookings for 250 flights for any period of time. He said he was talking to all the lessors so that the airline’s commitment of deploying 25 aircraft during the summer schedule is honoured.

Eventually, the airline will get back to its 35-aircraft fleet, he told the pilots. If the airline already had A320s, it would have been easier for it to induct them as there were enough around.

He said the airline was fortunate not to go the Kingfisher Airlines way as there was not a single day of disruption of service.

He acknowledged the contribution of pilots in continuing the service without any issues even though there were some delays in paying salaries. He also said the government as well as Boeing have been extremely supportive of the airline.

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