Lessor wants 3 SpiceJet aircraft deregistered over unpaid dues

A Dubai-based lessor of SpiceJet Ltd has asked India’s aviation regulator to deregister three of the budget airline’s planes as SpiceJet struggles with high costs and maintenance challenges.

The United Arab Emirates aeronautics firm AWAS did not specify why it was seeking to deregister the three Boeing 737s in the notification, published by India’s aviation regulator.

The aircraft – VT-SYW, VT-SYX and VT-SYY were former Jet Airways aircraft which SpiceJet had taken in 2019 after Jet’s closure. The aircraft in question are between 11 and 13 years old.

The aircraft – VT-SYW, VT-SYX and VT-SYY were former Jet Airways aircraft which SpiceJet had taken in 2019 after Jet’s closure.

VT-SYW was delivered to Jet Airways in 2010 as VT-JBQ and has flown 43,024 hours across more than 19,000 flight cycles. According to FlightRadar24.com, it is scheduled to fly from Thiruvananthapuram to Delhi on July 30.

VT-SYY joined Jet as VT-JBS in 2010 and has flown 41,764 hours in 11.82 years. It was in flight at the time of writing, flying from Delhi to Goa. VT-SYX was originally VT-JBR under Jet and has accumulated 44,136 hours.

SpiceJet told Reuters it was returning older aircraft in a phased manner, including these three aircraft, as a part of a modernization plan.

Dubai-based SpiceJet lessor asks DGCA to de-register 3 planes

“These returns have been planned and will not have any impact on our operations,” a company spokesman said by email. SpiceJet returned 12 old Boeing aircraft to lessors last year, the statement said. AWAS did not immediately reply to an email seeking comment.

After the lessor files a request under IDERA, the DGCA checks if the aircraft has any pending dues from tax authorities and airports, and if none are found, the de-registration is allowed.

The government has been trying to improve the ease of doing business for lessors to attract them to India. As part of that faster deregistration process by the regulator has been one of the demands from lessors, many of whom are backed by top global banks.

SpiceJet returned 12 old Boeing aircraft to lessors last year

India’s director general of civil aviation ordered SpiceJet to halve its departures for eight weeks after technical problems raised safety concerns.

Lessors typically apply for deregistration when lease agreements are terminated for reasons including nonpayment of lease rentals.

AWAS filed its request under Irrevocable Deregistration and Export Request Authorisations provisions, which are typically filed after payment negotiations between a lessor and airline fail.

ALSO READ – SpiceJet and De Havilland reach an agreement over Q400 aircraft

Previously, SpiceJet has been in disputes with aircraft company De Havilland for Bombardier Q400 planes

Previously, SpiceJet has been in disputes with aircraft company De Havilland for Bombardier Q400 planes and lessor Avolon for Boeing planes.

Shares of SpiceJet skyrocketed 11% to INR 42.5 per share on BSE in Monday’s intra-day trade after the airline operator assured ‘absolutely normal’ flight operations.

In the past month, SpiceJet has remained flat, while the frontline indices Nifty50 and the S&P BSE Sensex have gained around 8.5% each. On Monday, August 1, the private airline operator asserted that all flights departed on time as per schedule, without any cancellations.

ALSO READ – Shares of SpiceJet fell 9.3% after DGCA halves capacity; hits 52-week low

Shares of SpiceJet skyrocketed 11% to INR 42.5 per share on BSE in Monday’s intra-day trade after the airline operator assured ‘absolutely normal’ flight operations.

Over the weekend, the aircraft occupancy or passenger load factor remained steady in the range of 81 to 82%. This comes after the airline regulator Director General of Civil Aviation (DCGA) curtailed flight operations to only 50% for eight weeks.

ALSO READ – DGCA orders SpiceJet to operate only 50% of approved flights

Meanwhile, the airline launched 26 new domestic flights in July. Under the UDAN scheme, they introduced direct flights like Nashik from Delhi, Hyderabad to Jammu, Mumbai to Guwahati, Varanasi to Ahmedabad and Kolkata to Jabalpur. The airline operator deployed Boeing 737 and Q400 aircraft along these routes.

So far in the calendar year, shares of SpiceJet have tanked nearly 44% – the most amongst its peers. Meanwhile, shares of Interglobe Aviation slipped 7%, whereas, Jet Airways gained 15.7%, during the same period.

Related Articles

Responses

Jobs
Forum
Feed
News
Magazine