It is a known fact that the airline industry worldwide is passing through one of the worst crises it has ever had to face. One estimate says the combined losses of all airlines in the world put together has already crossed $314 billion and it’s not over yet. Back home, SpiceJet is feeling the heat. According to a Reuters report, some of its aircraft lessors want to repossess the planes due to non-payment of lease and maintenance dues. The report adds that SpiceJet may agree with the decision looking at the situation on the ground.
The report seems to suggest that even before the present COVID-19 crisis and the lockdown, some of its aircraft have been pulled out due to non-payment of maintenance charges. This was possibly due to the economic slowdown in the country and the resultant lower demand for air travel witnessed. The number of aircraft that the airline could out of its schedule may be around 10 out of a total fleet of 119 aircraft. This figure too has been largely due to the addition of 30 aircraft in 2019 when SpiceJet decided to take from the shuttered Jet Airways.
The reaction from SpiceJet to this development has been that these are not the way it has been reported but they have a pre-determined exit routes for aircraft based on the demand assessments and are part of the agreements they have with the lessors.
One of the lessors, Avalon has said as much as 80% of its customers worldwide have sent out a request for relief from aircraft lease payments due to cancellation of all flights the world over.
The other carriers in India, Indigo and Air India, along with SpiceJet have over 650 aircraft grounded at present. They are hoping that the government may come out with some kind of a bailout package worth $1.6 billion fi they have to survive.