On the request of Irish lessor Horizon Aviation, the DGCA will deregister two additional SpiceJet B737 aircraft that are struggling financially. By September 1st, the deregistration will have been completed.
In the past month, Horizon Aviation has been the third lessor to submit an Irrevocable Deregistration and Export Request Authorization (IDERA) to the aviation authorities in order to deregister B737 aircraft that are leased to SpiceJet.
When negotiations with the airline over the payment of dues are unsuccessful, a lessor will typically submit the IDERA. According to officials, Horizon Aviation submitted requests to deregister two B737 aircraft with the registration codes VT-SGQ and VT-SPU on August 25.
In order to maintain its status as a “strong and lively” carrier, the airline is looking into a number of possibilities, including selling a stake to other airlines, to fund up to Rs 2,000 crore. By the end of 2022, the airline would have seven additional Boeing 737 Max aircraft in its fleet. Currently, SpiceJet uses 60 aircraft to conduct commercial flights.
SpiceJet experienced net losses of Rs 316 crore in FY19, Rs 934 crore in FY20, and Rs 998 crore in FY21, respectively. On July 27, the DGCA issued a directive ordering SpiceJet to operate no more than 50% of its flights that were authorized for the summer schedule for an eight-week period.
The deregistration procedure is often permitted after the aviation regulator determines whether the aircraft has any unpaid taxes or airport fees. The Indian government has taken steps to improve the ecosystem for financing and leasing of aircraft.