Amid deregistration request, SpiceJet says returning older aircraft in phased manner

New Delhi : Amid deregistration request for its aircraft, budget carrier SpiceJet on Saturday said that it plans to replace all its older Boeing aircraft with the new Max model in a phased manner and by the next calendar year, it will induct around 20 new Max planes into its fleet.

Its statement came as aviation regulator, the Directorate General of Civil Aviation has received requests from the lessor for deregistration of three of the airline’s planes.

Leasing firm Awas Ireland Ltds filed the requests for three Boeing 737 aircraft – VT-SYW, VT-SYX and VT-SYY, stationed at Varanasi and Amritsar – on July 29.

The deregistration requests of flights has been filed under Irrevocable Deregistration and Export Request Authorisations (IDERA) and sources said that it is usually filed if a lessor and airline are unable to reach a payment negotiation.

Deregistration process is generally allowed after the aviation regulator checks if the aircraft has any pending dues from tax authorities and airports.

A SpiceJet spokesman said: “As part of this modernisation plan, we are returning older aircraft in a phased manner including these three aircraft. These returns have been planned and will not have any impact on our operations. SpiceJet has already returned 12 old Boeing aircraft to lessors in the last calendar year. We have 13 MAX aircraft in our fleet and the new inductions would begin from October 2022.”

The government has taken measures to strengthen the ecosystem for aircraft leasing and financing in India. Under International Financial Services Centres Authority Act 2019, the International Financial Services Centres Authority (IFSCA) was established during April, 2020.

Financial assessment carried out by it in September 2021 revealed that SpiceJet is operating on cash and carry and suppliers are not being paid on a regular basis leading to the shortrage of spares, the DGCA said.