SpiceJet

The origins of SpiceJet can be tracked back to March 1984 when the company was established by Indian industrialist S. K. Modi to provide private air taxi services.[6] On 17 February 1993, the company was named as MG Express and entered into technical partnership with the German flag carrier Lufthansa. The airline provided passenger and cargo services under the name of Modiluft before ceasing operations in 1996.[6]

In 2004, the company was acquired by Ajay Singh and the airline planned to restart operations as SpiceJet following the low-cost model.[6] SpiceJet leased two Boeing 737-800 aircraft in 2005 and planned to order 10 new aircraft for expansion.[7] SpiceJet opened bookings on 18 May 2005 and the first flight was operated between Delhi and Mumbai on 24 May 2005.[8] By July 2008, it was India's third-largest low-cost carrier in terms of market share after Air Deccan and IndiGo.[9] Indian media baron Kalanidhi Maran acquired 37.7% stake in SpiceJet in June 2010 through Sun Group.[10][11] The airline ordered 30 Boeing 737-8 aircraft worth US$2.7 billion July 2010 and a further 15 Bombardier Q4 Dash short-haul aircraft worth US$446 million in December 2010.[12]

In 2012, SpiceJet suffered a loss of over ₹39 crore (US$4.9 million) owing to increase in global crude prices.[13] On 9 January 2012, the Directorate General of Civil Aviation, reported that several airlines in India, including SpiceJet, have not maintained crucial data for the flight operations quality assurance.[14] The Bombay Stock Exchange announced that ever since June 2011, SpiceJet had been suffering losses.[15] In 2012, Kalanidhi Maran increased his stake in the airline by investing ₹100 crore (US$13 million) in the airline.[16] The airline returned to profits at the end of the same year.[17] SpiceJet entered into an inter airline pact with Tigerair on 16 December 2013 which was scrapped in January 2015.[18]

In January 2015, the Sun Group sold its entire shareholding and transferred control to Ajay Singh.[19]

In late September 2017, the airline announced that it had placed a firm order for 25 Q400 turboprop aircraft.[20]

In 2019, following the grounding of Jet Airways, Spicejet took over nearly 30 aircraft that were grounded by the former.[21][22]

SpiceExpress[23]—the logistics arm of SpiceJet airline—has helped to keep the company afloat during the pandemic amid drastic drop in passenger business. In May 2021, the airline earned ₹200 crore from freight operations and commands a 5 per cent market share in India's outbound cargo business.

In July 2021, SpiceJet reported net losses shrunk to US$34.6 million during the fiscal quarter ended 31 March 2021, as revenue fell by 28% annually to $294.8 million. The airline plans to raise funds to the tune of $337.2 million to ensure its long term sustainability.[24]

In May 2022, Directorate General of Civil Aviation started a safety investigation into SpiceJet's aircraft following a series of incidents involving malfunctioning plane equipment, including an incident where a flight from Mumbai to Durgapur experienced severe turbulence that injured 12 passengers and 3 crew members.[25][26]

In July 2022, the Directorate General of Civil Aviation has imposed restrictions on SpiceJet flights following reports of continuous technical glitches. For eight weeks, the DGCA has directed that only 50% of the existing flight services should be allowed to fly. The proposal also states that there will be strict monitoring by DGCA during this period.[27]

SpiceJet Limited is publicly traded under NSE: SPICEJET, with a market capitalization of about ₹2,214.28 Cr as of 1 April 2020.[28]

On 30 March 2020, HDFC Mutual Fund bought 3.4 crore shares of SpiceJet from the open market constituting 5.45% stake.[29]

SpiceJet is headquartered in Gurgaon, India.[2] Ajay Singh serves as the managing director of the airline since January 2015.[30] The airline's logo consists of 15 dots arranged in three rows of five each in the order of their reducing sizes on a red background. In June 2015, the airline unveiled its current logo with a new tagline Red. Hot. Spicy.[31] SpiceJet names all its aircraft with the name of an Indian spice.[32]

SpiceJet codeshares with the following airline:

• Emirates[37]
• Gulf Air[38]

SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in March 2005, with deliveries scheduled up to 2010.[7] In November 2010, the airline ordered 30 Boeing 737-800s.[47] On 9 December 2010, Bombardier Aerospace announced that SpiceJet had placed a firm order for fifteen Q400 NextGen turboprop airliners with options for another fifteen. SpiceJet used its fleet of Q400s for short-haul operations.[48]

In March 2014, the airline signed a US$4.4 billion deal with Boeing for the procurement of 42 737 MAX 8 aircraft.[49] In 2015, SpiceJet was in talks with both Boeing and Airbus for a possible order of more than 100 single aisle aircraft, either Airbus A320neo or the Boeing 737 MAX with the same being confirmed by managing director, Ajay Singh, in a conference in Dubai.[50]

In January 2017, the airline placed a firm order for 100 737 MAX 8 aircraft, and revealed itself as the airline behind the 13 MAX 8 aircraft previously attributed to an unidentified customer, taking its total order to 155 MAX 8 aircraft with purchase rights for 50 additional MAX 8 and wide-body aircraft. The budget carrier plans to grow its operational fleet to 200 airplanes by the end of the decade and expand regionally with the new 737 MAX family of airplanes.[51]

In June 2017, the airline signed a letter of intent with Bombardier at the 2017 Paris Air Show, to purchase up to 50 Q400 aircraft, catering to growth in passenger traffic arising from its participation in the Indian government's UDAN regional connectivity scheme.[52]

It is announced to induct 16 Boeing 737-800 NG in response to fulfil demands in local and international expansion. It was ordered due to the fleet of 737 MAX being currently banned and the downfall of Jet Airways.[53] Due to the closure of all Jet Airways flights they have place orders for 6 additional Boeing 737-800 NG and 5 more Bombardier Q-400 in Dry Lease to cover the shortage in the Indian aviation industry.[54]

Over the years, SpiceJet operated the following aircraft:

• Airbus A319-100[55] Leased from BH Air
• Airbus A320-200[56] Leased from BH Air
• Airbus A330-900[57] Leased from Hifly.[58]
• Airbus A340-300[59] Leased from Hifly