 "Spicejet")
Spicejet(Photo: Shutterstock)
SpiceJet has informed the Directorate General of Civil Aviation (DGCA) that it will spend Rs 400 crore within the next two years to bring its 36 grounded planes back into service, sources told Business Standard.
The regulator summoned the airline for a meeting last Friday to discuss its plans to get grounded planes back to service.
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This followed the airline’s recent Rs 3,000 crore fund-raising through a qualified institutional placement (QIP) from global investors and mutual funds, sources said. The airline did not respond to Business Standard’s request for a statement on this matter.
During the QIP, the airline revealed that 36 of its 58 aircraft were grounded. This was mainly due to alleged payment defaults to lessors, financial challenges impacting aircraft maintenance, and shortages of components.
Sources said the airline informed the regulator that seven of the 36 grounded planes would return to service by the end of the year. The remaining 29 aircraft are expected to be reactivated within 15-21 months thereafter.
“Overall, the airline anticipates it will take 18-24 months to bring all grounded planes back to service,” a source stated.
Meanwhile, even as SpiceJet is bringing grounded planes back into service, the airline on Tuesday announced that it will lease seven planes to boost its flight operations immediately. These seven leased planes will be inducted into the fleet by November 15, it added.
Sources said that the grounded planes of the carrier will undergo return-to-service (RTS) procedures mandated by aircraft makers like Airbus and Boeing.
Once the RTS process is completed, the DGCA will allow the planes to conduct commercial passenger flights.
In aviation, RTS refers to the process of bringing an aircraft back into operation after being grounded. This involves performing necessary maintenance or repairs, conducting thorough inspections, and ensuring regulatory compliance.
The aircraft may undergo flight tests before receiving certification from the DGCA, confirming its airworthiness and readiness to re-enter commercial service.
The recent fundraise has provided a lifeline to the airline, which has been grappling with losses for the past six years. It was struggling to pay staff salaries and clear statutory dues like provident fund (PF) and goods and services tax (GST).
The cash shortage has severely impacted the airline’s operations.
According to aviation analytics firm Cirium, SpiceJet is operating 922 flights per week this month. This is 78 per cent fewer than its services during the same month five years ago.
First Published: Oct 08 2024 | 6:44 PM IST
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