SpiceJet has left no stone unturned to expand its reach in the aviation sector — whether it is taking the slots of Jet Airways at airports or leasing the grounded planes of Jet Airways. Ameya Joshi questions SpiceJet’s moves.
For years, the basis of profitability for Low Cost Carriers (LCCs) was pinned to a single fleet type. This allowed lower expenditure on training, easy swaps, lower inventory requirement and minimal expenditure on crewing systems. However, over the years LCCs in the west and India moved to a multi fleet model. SpiceJet inducted the Q400 to complement its B737 fleet and IndiGo opted for the ATR and then the A321neo to complement its fleet of A320s and A320neos.
Cut to April 2019, Jet Airways announced the suspension of operations and this was followed by the Indian regulator Directorate General of Civil Aviation (DGCA) mandating that erstwhile slots of Jet Airways will only be given out when additional capacity was inducted. A month into the B737 MAX grounding, Boeing operators around the world were eyeing additional B737s in the market to tide over the capacity crisis. With 75+ B737s available with Jet Airways and the lessor looking to terminate the lease for nonpayment of rentals, it was an opportunity like no other and SpiceJet pounced on it.
As of mid-May, SpiceJet has taken delivery of 16 B737s which operated for Jet Airways and made them operational across multiple routes in the country. While this will help the airline expand and the country will come out of the capacity glut, it goes against the typical LCC mentality which could lead to high costs in the months to come for SpiceJet.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Adani Airport Thales Forge Strategic Partnership to Improve Airport Operations and Passenger Experience in India
Adani Airport Holdings Limited (AAHL), the largest private airport operator in India, and Thales, a global leader in advanced technologies, today announced a strategic partnership to revolutionise AAHL’s international airport operations and passenger experience across the country.
ADVANCING AIR MOBILITY OVERCOMING CHALLENGES, SEIZING OPPORTUNITIES
Advanced Air Mobility (AAM), as analysed by M P RAJASEKHARAN, explores solutions for reducing urban congestion and enhancing access to remote locations through sustainable, automated air transport systems, addressing key challenges and future opportunities in this evolving sector.
ON THE CUSP OF GROWTH
The growth of regional airlines in India will increase the market for regional jetliners.
BOEING STRIKE DISRUPTS INDIAN CARRIERS' EXPANSION PLANS
The Boeing machinist strike has stalled aircraft deliveries, directly affecting Akasa Air and Air India Express, both of which are now facing delays in their fleet expansion efforts, highlights
REGIONAL AIRPORTS MUSHROOMING WITH CHALLENGES GALORE
Karnataka's push for regional air connectivity has led to a surge in airport infrastructure, yet many of these airports face challenges like fluctuating demand and limited flight frequencies. While the UDAN scheme has supported growth, the long-term viability of several regional airports remains uncertain, highlights
'PHARMACY OF THE WORLD' SUPPLY CHAIN WOES
India's pharmaceutical sector, has achieved remarkable growth, but faces significant supply chain hurdles, including high logistics costs and limited cold chain facilities. Addressing these challenges is essential to sustain its global impact and future expansion, reports
BUMPER WINTER AHEAD FOR INDIAN CARRIERS
The DGCA's winter 2024 schedule approves 25,007 weekly flights, marking growth for Indian carriers, with Air India Express leading in expansion and Vistara set to merge with Air India, analyses
AIRPORT ADVANCEMENT
Indian airports are placing a greater emphasis on digitalisation and enhancing their eco-friendly credentials, updates
THROTTLING AHEAD
The situation with the grounding of Pratt & Whitney GTF engines is now trending downwards, a report
Connecting cities to airports HELI-TAXIS ARE OUT, AIR TAXIS ARE IN
As heli-taxis falter, electric air taxis promise to transform urban connectivity. Yet, scalability, regulations, and operational challenges must be overcome for them to deliver efficient, affordable city-airport travel, reviews