SpiceJet is currently India’s second-largest airline by domestic passengers carried, operating more than 600 daily flights with a fleet of over 50 Boeing 737 and DHC 8-Q400 aircraft. From its founding years to its recovery from the pandemic, what are some of the key moments throughout the low-cost carrier’s 30-year history?
In the beginning
The SpiceJet brand was born in 2004, but its air operator’s certificate (AOC) dates back to 1993, when an air taxi company owned by SK Modi partnered with the German flag carrier Lufthansa, which was keen to capitalize on India’s recently liberalized aviation industry. Together, they created MG Express, which went on to operate passenger and cargo services under the name ModiLuft.
ModiLuft took to the skies in May 1993, flying a Boeing 737-200 on lease from Lufthansa, and as India’s first major joint venture, expectations were high. However, rifts between the two owners over the airline’s finances ultimately caused ModiLuft to cease operations in 1996. The AOC, however, remained dormant.
SpiceJet’s early years
In 2004, the entrepreneur Ajay Singh drew up plans to create SpiceJet, one of India’s first low-cost carriers. Instead of following the lengthy process of creating an AOC fom scratch, Singh found a much quicker way to get his airline off the ground, and purchased ModiLuft’s AOC, renaming the carrier SpiceJet.
SpiceJet’s first flight departed from New Delhi (DEL) to Mumbai (BOM) on May 24th, 2005, using a leased Boeing 737-800. The airline’s choice of aircraft set it apart from its fellow low-cost competitors, IndiGo and GoAir (later known as Go First), both of which opted for the Airbus A320 family.
Photo: BoeingMan777/Shutterstock
SpiceJet operated its 737-800s with a maximum capacity of 189 passengers in an all-economy class configuration. This gave the airline a significant cost advantage over the likes of Air India and Jet Airways, and by 2008, SpiceJet had grown to become one of India’s five largest carriers.
In 2010, SpiceJet ordered a further 30 737-800s and 15 DHC Q400s to support its ambitious expansion plans. However, operating in an extremely competitive market and faced with rising oil prices, the airline began to rack up losses in 2012, and, by 2014, was just days away from bankruptcy.
Yet by 2015, SpiceJet’s recovery was well underway, boosted by the presence of Ajay Singh. As Managing Director, Singh helped to guide the airline through troubled times and back into profit, and in 2017, SpiceJet sealed its commitment to the 737 MAX with an order for 100 of the aircraft. However, only 13 were delivered before the aircraft was grounded in 2019.
Ex-Jet Airways Boeing 737s
The collapse of Jet Airways in April 2019 gave SpiceJet the chance to grow its fleet without waiting for the 737 MAX to be ungrounded. Government rule changes also meant that the airline could acquire additional slots at Jet Airways’ major hubs of New Delhi and Mumbai if it took more aircraft. And so between March 2019 and March 2020, SpiceJet added 42 aircraft to its fleet, the majority of which were former Jet Airways 737s.
In the short term, this bold move paid off, with SpiceJet managing to capture much of Jet Airways’ capacity. However, losses soon began to creep back by the end of 2019, although these troubles were minor in comparison to the pandemic about to strike.
Photo: Koji Yokoyama/Shutterstock
During India’s brutal lockdown in early 2020, SpiceJet’s cargo operation, named SpiceXpress, was its saving grace. The airline also tried to diversify, selling COVID tests and other medical equipment to the government, in a bid to bring in desperately needed revenue and avoid bankruptcy.
However, even its substantial cargo operation could not protect SpiceJet from the devastating impacts of the pandemic, and the airline incurred huge losses throughout 2020. As it struggled to pay aircraft leases, aircraft were repossessed. This led to the carrier’s fleet size dropping below 100, although this was partially offset by the lack of international flights.
Ongoing recovery
In a post-pandemic world, SpiceJet is once again rebuilding itself, much like it did back in 2015. While its market share has decreased, it is performing much stronger financially, and recently posted a $24.5 million profit for Q1 2023, benefiting from increased passenger demand.
Today, SpiceJet operates 58 aircraft, including eight Boeing 737-700s, 14 737-800s, nine 737 MAX 8s, three 737-900ERs, and 24 DHC 8-Q400s. Back in 2021, there were reports of the airline planning to take on two 777s from Boeing, as compensation for the delays in the 737 MAX deliveries, although this did not come to fruition.
Photo: BoeingMan777/Shutterstock
SpiceJet has an outstanding order for 129 737 MAX 8s, which will help it to reclaim its stake in the rapidly changing and highly competitive Indian aviation market. The airline has also expanded its international route network, which today includes Dubai (DXB), Bangkok (BKK), and Jeddah (JED).
What do you think about SpiceJet’s history? Have you flown with the airline? Let us know by commenting below.
Source: ch-aviation.com