India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has deregistered two of SpiceJet’s airplanes following requests from their lessors. The airline also had to give up some aircraft last year after it defaulted on lease rentals. SpiceJet, however, has said that the latest deregistration will not affect its operations.
Two more 737s gone
SpiceJet’s fleet has shrunk by two airplanes as the DGCA deregistered two of its Boeing 737 aircraft in accordance with the rules dictated by the Irrevocable De-registration and Export Request Authorizations (IDERA).
The Times of India reports that action had to be taken after two Dublin-based lessors, Wilmington Trust SP Services and Aircastle (Ireland), made a request under IDERA, which usually happens in cases such as defaulting of lease rentals.
The DGCA took swift action and deregistered the aircraft within five days of the lessor’s request, as required under IDERA. SpiceJet, however, is confident that this won’t affect its operations, with an airline spokesperson commenting,
“This won’t impact our ops. One aircraft was grounded for a long period and was to be returned. The other one being returned due to engine issues. Both aircraft being returned consensually.”
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Not the first time
SpiceJet is not new to the DGCA deregistering its airplanes. Last year, some of its planes were returned to lessors for defaulting lease rentals. Three of these wore registrations VT-SYW, VT-SYX, and VT-SYY and were ex-Jet Airways aircraft acquired by SpiceJet after the former ceased operations in 2019.
The airline had claimed back then that it planned to replace all its older Boeing aircraft with the new MAX models in a phased manner. It further added: “Between now and next calendar year, SpiceJet will induct around 20 new MAX planes into its fleet. As part of this modernisation plan, we are returning older aircraft in a phased manner including these three aircraft.”
Giving equity to lessors
SpiceJet recently posted a net profit of ₹1.1 billion ($13 million) for the quarter ending December 31st, 2022. To offload some of its existing debt and payment, the carrier announced recently that its biggest lessor, Carlyle Aviation Partners, will acquire a 7.5% stake in the budget carrier, which will help reduce its debt by almost $100 million.
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This was part of a financial restructuring of the airline in which it will also separate its dedicated cargo airline SpiceXpress and give Carlyle Aviation Partners a stake in it as well.
SpiceJet has had to deal with several challenges in the last two to three years. From weak finances to questions being raised about its fleet, the airline has weathered it all. Hopefully, its recent attempts to reduce debt and liabilities will help make its operations somewhat smoother this year.
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Source: The Times of India