SpiceJet Grounds Boeing 737 Max Fleet Amid Financial Woes

SpiceJet has ceased operations of its Boeing 737 Max aircraft after mutually terminating a lease agreement with BOC Aviation. The airline had previously received 13 of these planes as part of a $22 billion order for up to 250 aircraft. However, the global grounding of 737 Max planes following accidents in Ethiopia and Indonesia in 2019 was a significant setback.

SpiceJet's operations have shrunk over the past several months due to a cash crunch. The airline has delayed salaries and vendor payments, with lessors repossessing planes for rent default. As of July, SpiceJet's domestic market share dropped to 1.6% from 3.9% in January.

The airline is currently seeking more time from the Delhi High Court to deposit ₹50 crore in connection with its dispute with former promoter Kalanithi Maran. The court has scheduled a hearing for September 21, after SpiceJet informed the court about a delay in receiving a second tranche under the Emergency Credit Line Guarantee Scheme.