Dubai Airport Cancels SpiceJet Flights Over Payment Dispute

On July 31, 2024, Dubai International Airport, operated by Dubai Airports Company, suspended several SpiceJet flights due to “payment issues,” as reported by multiple Indian news outlets. Approximately ten flights were canceled on that day, causing significant disruptions and leaving hundreds of passengers stranded.

According to ch-aviation schedule data, SpiceJet had flights planned for Ahmedabad, Amritsar, Jaipur, Kochi International, Kozhikode, Madurai, Pune, as well as two flights each to Mumbai International and Delhi International.

In response, SpiceJet issued a statement explaining that the cancellations were due to “operational reasons” and confirmed that services to and from Dubai have since returned to normal. Both SpiceJet and Dubai Airports Company have not provided further details despite ch-aviation’s request.

This incident highlights the ongoing financial difficulties faced by SpiceJet. The airline recently addressed reports alleging it had neglected provident fund contributions for its employees for over two and a half years. Additionally, SpiceJet is currently dealing with insolvency petitions from seven entities, mainly aircraft frame and engine lessors, filed at the National Company Law Tribunal. An equal number of claims are active in the Delhi High Court, with some entities having multiple cases against the airline.

In response to its financial troubles, SpiceJet has initiated a capital raising campaign this year, successfully securing around INR10.6 billion (USD126.5 million) so far. Last month, the airline’s board approved an additional INR30 billion (USD358 million) in capital raising. The funds are intended to stabilize operations, improve the airline’s financial position, and address some legal disputes and outstanding arrears.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com