Will talk to Boeing to restart 737 Max deliveries: SpiceJet CMD Ajay Singh

SpiceJet will initiate discussions with US-based aircraft manufacturer Boeing to resume deliveries of B737 Max planes from its 2017 order, the airline's Chairman and Managing Director, Ajay Singh, announced on Monday.

 

In January 2017, SpiceJet signed a deal with Boeing to purchase 205 aircraft, including 100 B737 Max planes. Boeing delivered about 13 aircraft before halting deliveries as the airline began facing financial difficulties.

 

Speaking at the airline's annual general meeting, Singh informed investors about plans to restart deliveries. "We placed an order for 200 aircraft with Boeing in 2017 and received 13 aircraft...we will talk to Boeing to restart deliveries," he said.

 

Singh also highlighted that approximately 30 of the airline’s planes are currently grounded and will be brought back into service within the next 12 to 15 months. SpiceJet’s total fleet size is about 60 aircraft.

 

Singh assured investors that the secured funding is aimed at strengthening the company and supporting its growth. "The money will be invested for growth. Investors need to have patience regarding interim dividends. We do hope shareholders will be rewarded with a higher share price in the future," he stated.

 

The low-cost carrier has been grappling with a cash crunch for several quarters amid legal battles over unpaid dues to aircraft lessors, engine lessors, and lenders.

 

SpiceJet has been reporting losses for the last six years. The Gurugram-headquartered airline recorded a 20 per cent year-on-year (Y-o-Y) decline in consolidated net profit to Rs 158.1 crore in the first quarter of FY25.

 

In October, the Directorate General of Civil Aviation (DGCA) removed SpiceJet from "enhanced surveillance" after the airline successfully raised Rs 3,000 crore through a qualified institutional placement (QIP) process. 

Road to recovery: 

• In 2017, the airline signed a deal with Boeing to purchase 205 planes, including 100 B737 Max aircraft.
• Boeing sent about 13 planes before ceasing deliveries due to airline’s financial difficulties.
• 30 planes of the airline are currently grounded, will be operational in the next 12-15 months.
• The airline reported a 20% year-on-year decline in consolidated profit to Rs 158.1 crore in Q1FY25