SpiceJet has announced plans to bring three of its grounded Boeing 737 MAX aircraft back into service by April 2025. The airline has entered into an agreement with StandardAero, a US-based maintenance, repair, and overhaul (MRO) provider, to restore its fleet of grounded Boeing 737 MAX planes. This collaboration is a key step toward expanding the airline's operations and fleet capacity.
As part of the deal, StandardAero will provide the necessary services to restore the aircraft, including support for the LEAP-1B engines that power the Boeing 737 MAX. The agreement follows SpiceJet's earlier partnership with CFM International, the engine manufacturer, to secure materials and support for the engines. Additionally, the airline has resolved disputes with several lessors, which had previously grounded the aircraft.
SpiceJet’s Chairman and Managing Director, Ajay Singh, expressed that the return of these fuel-efficient Boeing 737 MAX planes will significantly enhance the airline's financial health. The Boeing 737 MAX is known for being 20% more fuel-efficient and producing a 50% smaller noise footprint compared to older models. This makes the aircraft vital for SpiceJet's fleet expansion and market share growth.
Currently, SpiceJet has seven Boeing 737 MAX planes in its fleet, of which three will be operational by April 2025. The airline is focused on strengthening its fleet and recently raised Rs.3,000 crore to support its growth and resolve various operational challenges. Additionally, SpiceJet has successfully negotiated with multiple lessors, including Export Development Canada, Engine Lease Finance Corporation, and others, to facilitate the return of the grounded aircraft.
With around 28 planes in operation, SpiceJet is working towards expanding its fleet and improving its services for passengers. In addition to its strategic fleet restoration plans, SpiceJet successfully raised Rs.3,000 crore through a Qualified Institutional Placement (QIP). This significant fundraising effort underscores the airline's proactive approach to securing its financial stability and preparing for future growth. The funds are a clear reflection of the company’s commitment to strengthening its financial position, allowing it to overcome past challenges and ensure long-term sustainability.
This substantial capital influx not only provides the airline with the liquidity needed to settle overdue debts with several lessors but also facilitates crucial aircraft maintenance and upgrades. By addressing these financial obligations, SpiceJet is positioning itself to optimize its fleet and operational capabilities. The raised funds are vital in ensuring that the airline remains on track to meet market demands, enhancing its ability to compete effectively in the aviation industry. With a renewed focus on financial health, SpiceJet is better equipped to comply with evolving market requirements and provide enhanced services to its passengers.