The Supreme Court of India has given finally-strapped SpiceJet three weeks to resolve its financial dispute with Credit Suisse and overturned the Madras High Court order to wind down operations.
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SpiceJet loses its appeal in winding-up case in Madras High Court
SpiceJet’s first 737 MAX 8 takes-off from Boeing Field in Seattle, Washington (Craig Larson photo).
From Bloomberg/Quint:
SpiceJet is on the brink, can it survive again?
The Madras High Court has ordered the slow dismantlement of SpiceJet after it failed to pay the bills of SR Technics for maintenance on their aircraft.
The past due bills are reportedly total around $24 million.
The court put the ruling in abeyance for three weeks provided the airline finds around $5 million.
The airline has stated it will appeal the court decision.
Ajay Singh to the rescue?
Previously the airline issued this financial report last month:
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SpiceJet cuts down net loss to INR 561.7 Cr in Q2 FY2022 from INR 729 Cr in Q1 FY2022 Reports EBIDTAR profit of INR 50.6 Cr, 149% growth Quarter on Quarter Strong showing in passenger business – highest domestic load factor of 78%, increase in passenger revenue by 53%, yield up by 30%, flight departures increase by 39% as compared to Q1 FY2022 Positive tailwinds: Return of the 737 MAX in Q3 FY2022, settlement with majority of MAX lessors, transfer of logistics business, shareholder approval for fund raise of up to INR 2500 Cr |
For the Quarter ending September 2021
Key highlights for the quarter – SpiceXpress
Key highlights for the quarter – Passenger
Current highlights for the quarter – Passenger
SpiceJet, the country’s favorite airline and the leading logistics platform, cut down its net loss in the traditionally weak Q2 despite Covid-19 continuing to affect demand. On a standalone basis, the net loss was reduced to INR 561.7 crore as against INR 729 crore in the first quarter of FY2022. Total revenue was INR 1,539 crore for the reported quarter as against INR 1,266 crore in the last quarter. For the same comparative period, operating expenses were INR 2,100 crore as against INR 1,995 crore. On an EBITDA basis, loss was INR 106.5 crore for the reported quarter as against loss of INR 244 crore for the last quarter. The Company’s business operations continued to be significantly impacted due to the second wave of Covid-19 which continued to impact travel demand negatively during the quarter ended September 2021. SpiceXpress continued with its upward performance reporting increased revenue of INR 497 crore for the reported quarter as compared to INR 473 crore in the last quarter, a jump of 5%. The reported quarter though witnessed a negative cash flow as the continuing rise in fuel costs could not be passed on to our customers due to committed long term contracts. These have now been re-negotiated and corrected to suit the present operating cost environment. Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We have made excellent progress in our recovery and I expect this trend to continue forward in the coming quarters. With the nationwide vaccination drive growing at an unprecedented pace across geographies, there is a significant jump in travel demand and we are very excited about the demand recovery. The settlement with key lessors, the return of the 737 MAX in the current quarter (Q3), transfer of the logistics business and some very significant announcements lined up soon are all positive tailwinds that should have a significant impact on our long term plans.” “The return of the 737 MAX comes at the perfect time for us with passenger traffic picking-up and the government allowing airlines to operate at full capacity. We look forward to inducting additional capacity in the form of our 737 MAX aircraft that will upswing our operational efficiencies and provide significant cost saving capabilities.” In terms of operational parameters, SpiceJet had the best passenger load factor amongst all airlines in the country during the quarter. The average domestic load factor for the quarter was 78%. In the reported quarter, SpiceJet received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Private Limited, as a going concern, on slump sale basis valued at INR 2,555.77 crore. The transfer of the logistics business once consummated will result in a one-time gain for SpiceJet wiping out a substantial portion of the company’s negative net worth. SpiceJet has also finalized terms of settlements with Avolon and CDB Aviation, two of its major lessors of 737 MAX aircraft. These settlements and operations of 737 MAX aircraft will result in significant savings for the airline. The airline expects to start flying its MAX aircraft soon once all regulatory approvals have been received. |
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SpiceJet to resume Boeing 737 MAX operations on October 5
From the the Times of India:
Top Copyright Photo: SpiceJet Boeing 737-8 MAX 8 VT-MXM (msn 60225) PAE (Nick Dean). Image: 948124.
SpiceJet aircraft slide show:
SpiceJet to trial the IATA Travel Pass
SpiceJet made this announcement:
In a step towards building passenger confidence as international travel picks up, SpiceJet will begin trial of IATA (International Air Transport Association) Travel Pass mobile app for digital health verification. The trial will be conducted on flights out of Mumbai to Male effective August 23, 2021.
The IATA Travel Pass is a mobile application that helps travelers to store and manage their verified certifications for Covid-19 tests or vaccinations. The Travel Pass will manage and verify the traveller’s COVID-19 status in line with governments’ health and border requirements.
In another significant development, SpiceHealth has been on-boarded by IATA as a lab partner for the Travel Pass trial. SpiceHealth is a healthcare company founded by the promoters of SpiceJet.
SpiceHealth has emerged as the fastest-growing diagnostic lab in the country – having conducted more than 3.5 million RT-PCR tests since its launch in November 2020. SpiceHealth laboratories are accredited by National Accreditation Board for Testing and Calibration Laboratories and Indian Council of Medical Research. SpiceHealth currently operates 21 labs and collection centers for RT-PCR and rapid antigen testing spread across eleven cities in India. Besides, the Company also operates seven vaccination centers across five states.
Other news: SpiceJet launches 14 domestic routes:
SpiceJet brings in oxygen concentrators to India from China, defers 50% of its employee’s salaries
SpiceJet is doing its part to help in the COVID-19 surge in India. The company has brought in over 4,400 oxygen concentrators to India from China in the past two weeks. The company made this announcement on social media:
In other news, SpiceJet is reeling due to the COVID crisis in India. The airline is deferring up to 50% of its employee’s salaries for April due to a capital crunch and a severe drop in passenger traffic.
Top Copyright Photo: SpiceJet Boeing 737-8 MAX 8 VT-MXM (msn 60225) PAE (Nick Dean). Image: 948124.
SpiceJet aircraft slide show:
SpiceJet signs MOU with Avenue Capital Group for financing, acquisition and sale and lease‐back of up to 50 aircraft
SpiceJet has signed a Memorandum of Understanding (MOU) with Avenue Capital Group, New York, for a strategic alliance in respect of the financing, acquisition and sale and lease‐back of 50 new planes to be ordered by the airline.
The MOU sets out the next steps and conditions upon which Avenue, as part of the strategic alliance with SpiceJet, will assist with placing of SpiceJet’s new aircraft portfolio including sale and lease‐back of and also assumption of ownership of potentially up to 50 of these aircraft.
SpiceJet aircraft photo gallery:
SpiceJet aircraft slide show:
Gulf Air and SpiceJet to explore options to work together
Gulf Air, the national carrier of the Kingdom of Bahrain, and SpiceJet, India’s favorite carrier, signed a Memorandum of Understanding (MoU) to explore greater cooperation between the two airlines including an interline and codeshare agreement, coordinated cargo services, engineering services and pilot training. The MoU was signed by Mr. Krešimir Kučko, Gulf Air’s Chief Executive Officer and Mr. Ajay Singh, Chairman and Managing Director at SpiceJet.
Besides looking at a codeshare and interline agreement, the scope of the MoU includes the two airlines exploring growth opportunities beyond network expansion by leveraging each other’s strengths. Gulf Air and SpiceJet will look at collaborating in the field of pilot training to nurture talent in order to deliver the finest resources for both the airlines. The airlines will also engage and collaborate to enhance their respective cargo and engineering services. The signing of this MOU between the two carriers aims at initiation of collaboration between the two carriers, and further strengthening the strong ties between India and the Kingdom of Bahrain.
Gulf Air currently operates 82 weekly flights to eight destinations in India: Mumbai, Delhi, Chennai, Thiruvananthapuram, Cochin, Hyderabad, Calicut and Bangalore. SpiceJet currently operates flights to more than 50 destinations within the Republic of India.
SpiceJet to open a hub in Ras al-Khaimah, UAE
SpiceJet has announced its intention to build its first international hub in the United Arab Emirates, specifically in Ras al-Khaimah. The UAE’s emerging travel destination, which will serve as a new home for India’s affordable SpiceJet. More on the news below:
- SpiceJet chairman and managing director Ajay Singh stated India’s second-largest airline would use this new hub to extend its range as far as Western Europe. SpiceJet flights between New Delhi and Ras al-Khaimah should begin in December.
- SpiceJet, which Singh retook control of in 2015, has embarked on an expansion. It operates a fleet of 111 Boeing and Bombardier aircraft and flies to over 50 Indian destinations and a handful of international routes, including Dubai.
- Under the plan, SpiceJet would begin flights in Ras al-Khaimah, then work over the coming months to create the hub there, either under the SpiceJet name or another. It will maintain its flights to Dubai.
The opening of the international hub is one of many exciting ventures happening in Ras al-Khaimah, which has emerged as the leading UAE destination for those seeking a culturally-immersive experience with luxury amenities and rich history. Beyond the SpiceJet hub, this hidden gem is on a mission to host the world’s largest firework show during New Year’s Eve 2020. Celebrity guests, renowned performers, events, games and more are currently in the works to culminate the never-before-seen celebration.
SpiceJet aircraft photo gallery:
SpiceJet Boeing 737-800 skids off the runway while landing at Shirdi Airport
SpiceJet Boeing 737-800 (VT-SGJ) overshot the runway while landing at Shirdi Airport on Monday. Flight SG946 was operating from Delhi to Shirdi, India with 164 passengers and crew members on board. There were no reported injuries.
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