SpiceJet cuts down fleet size to arrest loss

Over last six months, SpiceJet's fleet strength has shrunk from 58 to 48 with the airline returning ten Boeing 737s to lessors

SpiceJet has reduced its capacity in a “fleet standardisation” exercise, the airline said on Tuesday. Over the past six months, the airline's fleet has shrunk from 58 aircraft to 48 planes with the carrier returning 10 Boeing 737s to lessors. Three planes have been returned in the past two months alone.

The airline now operates 48 aircraft, including 33 Boeing 737s and 15 Bombardier Q400. The reduction in capacity and the grounding of a Boeing 737 following a collision with a buffalo in Surat have impacted the airline’s schedule, leading to cancellation of some flights.

“We have repeatedly stated that we want to standardise our fleet. Aircraft in question being returned are a mix of older, non-standard Boeing 737s, which are not a part of our long-term fleet plan. Our Boeing fleet is 33 and it is expected to grow back to 35 or 36 by the end of December. Our Bombardier fleet consists 15 aircraft,” said a SpiceJet spokesperson.

While SpiceJet is shrinking its fleet, its competitor IndiGo keeps adding aircraft to its fleet; it recently took delivery of its 100th aircraft. Earlier in the year, SpiceJet had denied that lessors had prematurely terminated aircraft leases.

In the last financial year, SpiceJet had added seven planes and ended the year with a fleet of 58 aircraft.

The airline continues to post loss and has reported Rs 124 crore loss in the first quarter of FY15 after a Rs 1,000 crore annual loss in FY14. According to the airline management, its unit revenue continues to show growth and is on the road to recovery.

"In Q1 of FY15, our operating unit revenue increased about 10 per cent. This does not include revenue from non-operating activities, which can sometimes inaccurately inflate the unit revenue numbers," said the airline's chief operating officer Kaneswaran Avili.