In the meantime, the market share of SpiceJet airline has been shrinking, as per the newest DGCA knowledge. In January, the airline had a market share of 5.6 % and since then it has repeatedly fallen, and in August, it dipped to 2.3 %. The airline had a largish share of 10.5 % in 2021.SpiceJet has been going through a number of points resulting from incapacity to lift funds. The airline has been defaulting on lease rental cost forcing plane lessors to maneuver insolvency courtroom towards the airline.Its operational fleet has been diminished from 74 in 2019 to twenty-eight in 2024. 36 plane have been grounded on account of dues and fund points. Higher costs of working capital, escalating fastened prices, fastened leases at airports have been weighing it down. Excellent liabilities embrace practically INR 3,700 crore resulting from lessors, and engineering & EDC liabilities and INR 650 crore of excellent statutory duesIn current weeks, SpiceJet’s troubles have mounted. Final month, the airline needed to function empty flights from Dubai as passengers weren’t allowed to examine in as a result of airline’s unpaid airport dues. Just a few weeks earlier in an identical case, some SpiceJet flights in Dubai had been cancelled resulting from non-payment of dues, with the corporate citing “operational causes” for the cancellations. On the finish of August, simply when the Dubai disruption occurred, the DGCA put SpiceJet underneath enhanced surveillance.The airline had briefly positioned 150 cabin crew members on furlough for 3 months resulting from lean journey season. It additionally delayed paying the salaries and defaulted on its provident fund commitments.Nevertheless, earlier than the QIP, one other aid got here for the airline. Considered one of its largest lessors Carlyle agreed to transform as much as USD 50 million of dues into fairness. SpiceJet and Carlyle will restructure obligations at INR 100 per share of SpiceJet. The settlement permits restructuring of sure plane lease obligations of SpiceJet aggregating to USD 137.68 million which upon settlement/waivers might be adjusted to USD 97.51 million. Carlyle may even contemplate buying a stake in SpiceXpress & Logistics Personal restricted, the cargo arm of the corporate through compulsorily convertible debentures.By March 2025, the airline may have a fleet of 40, or equal to what Akasa Air may have, after which add one other 40 within the subsequent yr. Moreover, in periods of robust demand, the airline will take planes on short-term moist leases, SpiceJet chairman and managing director Ajay Singh mentioned. As an illustration, it is going to induct eight plane for the festive and year-end season. “Regardless of shrinking in measurement, in FY24, there have been eight airports the place we had greater than 50 % of seat capability and 40 routes the place SpiceJet had a monopoly. We now have 30 unique locations underneath the regional connectivity scheme,” Singh mentioned.
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