Page 30 - AAA OCTOBER - DECEMBER 2019 Online Magazine

F which exclusive Freighter aircraft.
SpiceJet added 27 Boeing 737 NGs, four
Bombardier Q400s and one B737 freighter
between April and June 2019. The airline has
launched a number of new flights and enhanced
frequencies on its international network from
the key metros of Mumbai, Delhi and Hyderabad
to global hotspots such as Jeddah, Bangkok,
Colombo, Hong Kong, Dubai and Dhaka. The
airline is now operating flights from Mumbai to
the Saudi capital city of Riyadh which earmarks
the airline’s 10th international destination.

MAX Trouble
SpiceJet has been severely impacted by the
grounding of its B737 MAX fleet, which has
limited the carrier’s ability to increase its yields
owing to passenger disruptions and re-accom-
modation; while simultaneously increasing its
fixed costs on this category of aircraft. “We are
happy that we were able to minimise passenger
inconvenience by quickly filling the capacity
gap created in India’s aviation sector. The
results would have been vastly better but for
the painful grounding of the MAX aircraft. We
look forward to their swift return to service in
the near future that will help SpiceJet increase
its margins and provide a superior level of ser-
vice,” says Ajay Singh, Chairman and Managing
Director, SpiceJet.

SpiceJet continues to incur various costs with
respect to its 737 MAX’s and in the quarter
ended June 30, 2019, the airline announced
that it had received Rs 1141 million towards air-
craft and supplemental lease rentals as other
fighting for its survival. In August, SpiceJet announced a net profit of income; on account of 737 MAX’s inability to
Rs 2617 million in the quarter ending June 2019 as against a loss of undertake revenue operations. “This is a part
Rs 381 million for the corresponding quarter last year. SpiceJet now recognition of the total reimbursements, on
operates an aircraft fleet comprised of: B737-700 (7), B737-800 which the Company is working with the aircraft
(53), B737-900 (5) and Q400 (32). The airline has taken delivery of manufacturer, towards various ascertained
13 B737 MAX 8s, which remain grounded. SpiceJet has 3 B737-700 costs and losses incurred by the Company on

this aircraft,” SpiceJet says.
To cater for the loss of its 737 MAX fleet,
SpiceJet commenced operations with addi-
tional flights on its existing B737 NG & Q400
fleet. The airline increased increasing the daily
utilisation of these fleets to 15-16 hours per day
and 13-14 hours per day respectively. It also
inducted 27 Boeing 737 NGs between April 01,
2019 and June 15, 2019. The carrier had also
announced it would cater for the increase in
traffic during the winter season by inducting
5-10 Boeing 737 NG aircraft and 3 Q400 air-
craft during October 2019. SpiceJet had hoped
that its grounded Boeing 737 MAX’s would
resume normal operations by July/August 2019.

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