The many challenging lives of SpiceJet

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BSE query on “movement in volume", said it was “not in possession of any event or information which is ‘material’ and requires a disclosure". SpiceJet is also not in possession of as much funds as it needs, and it will need someone to pump in generous capital to give it a new lease of life. SpiceJet has seen many owners since 2004, when Ajay Singh bought an existing company and used it to float SpiceJet.

Its original ownership comprised Singh and the Kansagra family. In 2008, US billionaire Wilbur Ross bought 30%. In 2010, Ross and the Kansangra family sold their stakes to Kalanithi Maran of Sun TV fame.

In 2015, Singh returned, buying out Maran. Amid these shuffles, while the SpiceJet stock saw peaks and troughs, it created no long-term value. Covid-19 was a key turning point.

In 2019, SpiceJet flew 21.5 million domestic passengers, and was a clear No. 2 with a 15% share. Then, the pandemic happened.

In 2022, even as the industry recovered, SpiceJet flew only about half the number of passengers compared to 2019 and its share slumped to 5.5%. In order to increase that market share, it needs to fly more. SpiceJet has planes, but about two-fifths of its fleet is grounded because the company is either short on funds or is mired in disputes with leasing and engine companies.

According to civil aviation database Planespotters, 23 of 56 planes in SpiceJet’s fleet were currently grounded—an inactivity rate of 41%. That’s the highest among all operational domestic airlines. That figure for IndiGo, whose fleet is about six times that of SpiceJet, was 15%, while all planes of Vistara and Akasa were in service.