More lessors move DGCA to deregister 3 SpiceJet planes

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In further headwinds for struggling SpiceJet, lessors have approached aviation regulator DGCA for deregistration of three planes of the airline. Many aircraft of the budget carrier are grounded due to various reasons. The airline’s three lessors — Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing — have sought deregistration of one aircraft each, according to an update on the regulator’s website.

The latest development comes a day after the NCLT issued a notice to the Ajay Singh-promoted private carrier on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against it. As per Go First’s spokesperson, the airline is working to bring back our grounded fleet basis the loan sanctioned under the Emergency Credit Line Guarantee Scheme.

According to an aircraft tracking website, SpiceJet had 67 aircraft in its fleet comprising Boeing 737, B737 Max and regional jets Bombardier-Q400. Out of them, 37 were in operations and 30 were not in service as on May 3. Last week, SpiceJet said it has mobilised up to Rs 400 crore to revive 25 aircraft in its fleet that are out of operations owing to various factors. According to the NCLT website, two more petitions for insolvency resolution proceedings against SpiceJet are pending before it.

Spicejet is not the only airlines company that is facing issues. Jet Airways went through insolvency proceedings and in January it got new owner JKC (Jalan-Kalrock Consortium). Go First insolvency case is admitted in NCLT. Airlines are facing issues as there are troubles with both topline as well as bottom line of the company. Due to covid, the demand for air travel took a serious hit and after that high crude oil prices impacted the costs of airlines. All this created problems for whole sector