SpiceJet is plagued with the dilemma of insolvency measure by the proprietor, multiple aircrafts being grounded, rapid erosion of market share, and suffering from cash liquidity. In spite of all the odds against the airline, SpiceJet is commemorating their 18 glorious years of flights in the Indian airspace.
SpiceJet stock price plummeted on Tuesday creating a new 52-week low. SpiceJet stock was the top underperformer on the BSE exchange on Tuesday 23rd May 2023.
SpiceJet share price has been under pressure for most of the current year. During the bygone week, the airline’s stock has shrunk by at about 20% on BSE, whereas its monthly fall is greater than 25%. Year-to-date, SpiceJet’s stock has shed by about 40% on the BSE exchange.
SpiceJet suffers from insolvency as their proprietor Aircastle made a notion to NCLT against theairline because of pending dues.
The bankruptcy tribunal has directed SpiceJet and Aircastle to explore settlement options. The next hearing of the lessor’s insolvency proceedings against SpiceJet will be on May 25, as per reports.
Within two decades, SpiceJet is faces hurdles to conserve its market share amidst stiff rivalry during perilous times of frail liquidity. In April 2023, SpiceJet’s market share dipped to 5.8% compared to 6.4% in March 2023.
Feeble bid for renewal
SpiceJet had made an assurance for its investors by focussing on reviving their grounded planes from June. Additionally, SpiceJet aims to initiate two new flights, and has laid out a mega sale for flyers. These are the features for their 18th year anniversary which was celebrated on 23rd May 2023.
SpiceJet plans to revive 25 of its grounded planes into service. The airline is aiming for the reinstallation of 2 of Boeing 737s and 2 of Q400s by June 15. Additional grounded planes are aimed to be operational in the upcoming weeks.
SpiceJet has displayed their updated itineraries to initiate new flights which consists of two international UDAN flights on the Agartala-Chattogram-Agartala and Imphal-Mandalay-Imphal sectors within the closing of June.
SpiceJet plans to launch a new UDAN flight on the Kolkata-Tezpur-Kolkata sector and restart the Kolkata-Gwalior-Kolkata and the Jammu-Gwalior-Jammu UDAN flights. The airline will add flights on the Kolkata-Agartala-Kolkata and the Kolkata-Imphal-Kolkata sectors and restart flights on the Kolkata-Chattogram-Kolkata sector.
SpiceJet has made an announcement for one-way domestic fares starting at ₹1818/- on routes of Bengaluru-Goa and Mumbai-Goa. The sale offer is valid for bookings made between 23rd to 28th May 2023. The travel period for bookings under the offer is between 1st July to 30th March 2024.
Word from the Board
Ajay Singh, the Chairman and Managing Director of SpiceJet said, “SpiceJet has become a truly inseparable part of people’s lives and has made an unbreakable bond with our passengers, and we are immensely proud of this achievement.”
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