SpiceJet (SG, Delhi International) intends to lease in an additional ten B737s to cater for increased travel demand over the upcoming holiday season, multiple sources told the business news site Moneycontrol. The news comes as an increasing number of SpiceJet aircraft go out-of-service.
"The expansion is strategically timed to capitalise on the upcoming peak travel season," a source at the carrier told the outlet. "The increased capacity will enable the airline to meet the surge in passenger demand during holidays and festive season. The new planes are not part of the lease agreements signed in March. Those planes were signed on wet lease, and some of them have been returned as well."
Last week, the airline admitted to prospective investors that 36 of its 64 aircraft were AOG, primarily due to outstanding debts and cash flow issues. ch-aviation fleets data indicates the number of grounded aircraft has since increased to 38, and three wet-leased aircraft have returned to their owners.
SpiceJet is making a series of investor presentations to try to raise INR32.36 billion rupees (USD385.4 million), a part of which will go towards settling liabilities with existing lessors, returning those aircraft to service, and inducting new aircraft. Moneycontrol was told SpiceJet was spending circa USD180-190 million annually on aircraft leases and that the airline will need significant cash reserves to acquire any additional aircraft.
"The secondary leasing market has become expensive for Indian airlines and finding good deals in the current environment has become difficult, and thus capacity addition is minimal,” an insider said.
ch-aviation has contacted SpiceJet for comment.
