Fleet shortage forces SpiceJet withdrawal from Chennai | Explained
SpiceJet suspended flight operations from Chennai from early July due to aircraft shortage and services are expected to resume in October as the airline gradually rebuilds its fleet.
Until April, the airline operated 12 daily flights from Chennai, connecting the city to Ahmedabad, Mumbai, Kolkata, Kochi, Hyderabad, Shivamogga, Pune and Bengaluru.
Chennai is not the only city affected. SpiceJet scheduled 44% fewer flights in July compared to April as it grappled with operational and financial difficulties.
Why did SpiceJet suspend flights?
The airline’s current fleet has reduced from 30 to 12-13 aircraft a few months ago, resulting in temporary suspension of services to various destinations, including Chennai, Guwahati and Varanasi.
Data from the Directorate General of Civil Aviation (DGCA) shows that SpiceJet’s actual operations have declined sharply, with the number of planned departures falling from 4,812 in January to 2,956 in May.
The decline coincided with the return of leased aircraft to lessors, while high aviation turbine fuel prices and the depreciation of the rupee further compounded the airline’s financial woes. But SpiceJet’s liquidity problems date back well before the recent West Asian crisis.
Why do passengers complain?
Industry observers have also raised concerns that the airline continues to sell more seats than its current fleet can reliably operate, leading to flight cancellations and lengthy delays for passengers. They questioned the lack of regulatory intervention by the DGCA and the Ministry of Civil Aviation.
Responding to concerns, a SpiceJet spokesperson said: “In line with the seasonal decline in demand, a number of our aircraft are currently undergoing scheduled maintenance, including routine checks and C-Checks. We expect three aircraft to attend in July, followed by two aircraft in August and two aircraft in September and October upon completion of maintenance checks.”
“We also plan to commission 10 aircraft each under lease agreements in October and November. The lease agreements for these aircraft are currently being finalized and implemented, which supports our planned capacity increase before the busy travel season.”
How serious are SpiceJet’s financial problems?
It is known that the airline’s liquidity crunch has regularly affected employee payments in recent years. Salary payments are frequently delayed; In internal communication with staff, payments to lessors are prioritized and employees are encouraged to cooperate. There have also been complaints regarding delays in deposit of provident fund (PF) contributions and tax deducted at source (TDS), affecting employees’ statutory dues.
Financial stress has also brought regulatory scrutiny. On September 16, the Economic Offenses Wing (EOW) of Delhi Police registered a case against SpiceJet Managing Director Ajay Singh and other senior officials over allegations of cheating and criminal conspiracy in connection with provident fund dues. The case stems from a complaint by the Employees’ Provident Fund Organization (EPFO) alleging that the airline failed to remit more than ₹65.7 crore in employees’ PF contributions.
Primarily aimed at supporting financially distressed airlines like SpiceJet, the Union Cabinet in May approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, allocating ₹5,000 crore to help carriers deal with liquidity pressures arising from rising aviation turbine fuel (ATF) prices and disruptions caused by the West Asia conflict.
Under the programme, eligible airlines including SpiceJet, IndiGo and Air India will be able to access government-backed loans of up to Rs 1,500 crore.
Didn’t SpiceJet raise fresh funds recently?
In September 2024, SpiceJet raised ₹3,000 crore through an over-subscribed Qualified Institutional Placement (QIP), followed by another ₹736 crore from an earlier funding round. The airline had said the capital would be used to revive grounded aircraft, pay off liabilities, strengthen working capital and finance fleet expansion. While the fundraising has helped improve its balance sheet and restart aircraft production, the carrier continues to face liquidity pressures due to legacy debt, lease obligations and rising operating costs.
Prior to this, several aircraft and engine lessors, including Engine Lease Finance BV, Willis Lease Finance, Aircastle Ireland, Wilmington Trust SP Services and Celestial Aviation, had initiated insolvency proceedings against SpiceJet over unpaid dues. While some petitions have been resolved or denied, the case underscores the carrier’s lingering financial woes.
It was published – 03 July 2026 11:10 IST
