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SpiceJet is set to re-induct its first ungrounded Boeing 737 MAX aircraft into operations starting 29 January, 2025. Grounded for several months, the aircraft's return marks a significant milestone in the airline's fleet restoration and operational enhancement efforts.
To facilitate the restoration of its MAX fleet, SpiceJet recently entered into services agreements with StandardAero Inc., a leading US-based engine maintenance, repair, and overhaul (MRO) provider, and CFM International, Inc., the original equipment manufacturer (OEM) for LEAP-1B engines.
Under its ongoing fleet restoration plan, the airline aims to bring ten aircraft, including four Boeing 737 MAX planes, back into service by mid-April 2025 and this is the first 737 MAX aircraft to be brought back under the exercise.
The addition of the MAX aircraft will enable SpiceJet to operate to high-demand markets such as Jeddah and Riyadh without any operational restrictions. The induction of these fuel-efficient planes will result in significant cost savings due to the MAX's reduced fuel consumption, lower maintenance requirements, and higher aircraft utilization, all of which will contribute to further optimizing the airline's operations.
SpiceJet has announced the addition of special flights to Prayagraj for the Maha Kumbh by introducing new direct flights from Guwahati, Chennai, and Hyderabad.
In addition, the airline will enhance its existing daily services to Prayagraj from Delhi, Mumbai, Ahmedabad, Jaipur, and Bengaluru by adding more flights from these key cities.
The special flights from Chennai and Hyderabad will operate from 01 February to 27 February 2025, while services from Guwahati will run from 11 February to 28 February 2025
This initiative will significantly increase the current fleet size of 28 aircraft, even as some aircraft are redelivered to lessors during the same period.
SpiceJet has added 10 planes to its fleet since October 2024, comprising three previously grounded aircraft brought back into service and seven inducted on lease.
Over the past three months, the company’s network expansion strategy has resulted in the addition of more than 60 new flights, further enhancing its overall connectivity.
Ajay Singh, chairman and managing director, SpiceJet, said: “Our plan to bring 10 aircraft back into service by mid‐April is a reflection of SpiceJet’s unwavering commitment to its growth and operational excellence.
SpiceJet is on a strong path to recovery and growth, and we remain focused on providing reliable and affordable air travel to millions of Indians.'
SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s, & freighters and is the country's largest regional player operating multiple daily flights under UDAN, or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress, offering cargo connectivity across India and on international routes.
The scrip had tumbled 5.70% to end at Rs 49.66 on the BSE on Friday.
SpiceJet will unground 10 aircraft by mid]April 2025 further strengthening its network and operational capabilities. These will include four Boeing 737 MAX planes.
This initiative will significantly increase the current fleet size of 28 aircraft, even as some aircraft are redelivered to lessors during the same period. SpiceJet added 10 planes to its fleet since October 2024, comprising three previously grounded aircraft brought back into service and seven inducted on lease.
Over the past three months, SpiceJetfs network expansion strategy has resulted in the addition of more than 60 new flights, further enhancing connectivity and service options for its passengers
The agreement follows successful arrangements with CFM International, Inc., the OEM for LEAP-1B engines, and the lessor for the 737 MAX aircraft. These developments pave the way for the un-grounding and return to service of three Boeing 737 MAX aircraft by April 2025.
This initiative is a key part of SpiceJet's strategic efforts to restore its fleet, enhance operational capabilities, and support its rapid expansion plans.
As part of the global deal, CFM International will provide material and support services for these LEAP-1B engines for restoration of the engines, underscoring its collaborative partnership with the airline.
This collaboration and restructuring aligns with SpiceJet's robust fleet restoration strategy, which has seen rapid progress. In the past two months, SpiceJet has resolved disputes with multiple prominent lessors, including Export Development Canada, Engine Lease Finance Corporation, Babcock & Brown Aircraft Management, Aircastle (Ireland), Wilmington Trust SP Services (Dublin) Limited, Shannon Engine Support Limited and Genesis.
The settlement with Genesis underscores SpiceJet’s continued commitment to restoring financial stability, achieving operational resilience, and reducing legal liabilities. Subject to the settlement terms being satisfied, both parties have agreed to withdraw all ongoing litigation and disputes related to this matter at the appropriate forums.
This settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support, and Export Development Canada, among others.
In September 2024, Carlyle Aviation agreed to convert $30 million of lease arrears into SpiceJet equity at Rs 100 per share, signalling increasing confidence from stakeholders in the airline’s financial and operational recovery. The airline's recent financial progress has been recognised by Acuité Ratings & Research Limited, which recently upgraded SpiceJet's credit rating by four notches.
Ajay Singh, Chairman & MD, SpiceJet, said, “This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.”
The low-cost air carrier’s standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24.
Over the past three months, since raising Rs 3,000 crore through a Qualified Institutional Placement (QIP), the airline has cleared all pending statutory liabilities, including Tax Deducted at Source (TDS), Goods and Services Tax (GST), and employee salary dues.
With the airline now current on its statutory dues, it is poised to save significantly on interest payments.
Since October 2024, SpiceJet has been utilising its internal cash flows to meet its statutory obligations, including PF and TDS payments, reflecting the airline's improved financial health and operational discipline.
In addition to clearing its statutory obligations, the company has resolved multiple outstanding disputes with aircraft lessors and other creditors, significantly improving its balance sheet.
Since October 2024, the company has been utilising its internal cash flows to meet its statutory obligations, including PF and TDS payments, reflecting the airline’s improved financial health and operational discipline.
Ajay Singh, chairman and managing director, SpiceJet, said, “We are pleased to announce the clearance of all pending employee PF dues. This marks a new chapter in SpiceJet’s journey. By clearing all pending statutory dues and settling disputes with lessors and creditors, we are demonstrating our unwavering commitment to operational excellence, financial prudence, and the welfare of our employees. With the successful implementation of our financial turnaround strategy, we are confident in our ability to continue delivering superior service to our customers and achieving sustainable growth.”
SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes.