SpiceJet to Lease 10 Additional Boeing 737s for Holiday Travel Surge

SpiceJet is set to lease ten additional Boeing 737s to meet the increased travel demand expected during the upcoming holiday season, according to multiple sources cited by Moneycontrol. This move comes amid a rise in the number of SpiceJet aircraft out of service, reported ch-aviation.com.

“The timing of this expansion is strategic, aimed at addressing the peak travel period,” a carrier source told Moneycontrol. “The new aircraft will help us handle the surge in passenger numbers during the holidays and festive season. These planes are separate from the lease agreements made in March, which were wet leases and have already seen some aircraft returned.”

Last week, SpiceJet disclosed to potential investors that 36 of its 64 aircraft were out of service, mainly due to financial difficulties and cash flow problems. According to ch-aviation fleets data, the number of grounded aircraft has now risen to 38, with three wet-leased planes having returned to their owners.

To address these issues, SpiceJet is actively seeking to raise INR32.36 billion (USD385.4 million). This capital will be used to settle outstanding liabilities with lessors, return grounded aircraft to service, and acquire new ones. The airline is reportedly spending approximately USD180-190 million annually on aircraft leases, highlighting the need for substantial cash reserves to support fleet expansion.

An insider noted, “The secondary leasing market has become costly for Indian airlines, making it challenging to secure favorable deals. As a result, capacity expansion is currently limited.”

SpiceJet’s effort to lease additional aircraft aims to enhance its operational capacity and improve service during the high-demand holiday season, amidst ongoing financial and operational challenges.

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