SpiceJet Ltd’s operational fleet has shrunk from 33 aircraft at the end of December to about 21 in early May, bringing the airline close to the minimum threshold required to operate international flights under Indian aviation rules. Fleet count fell due to returns to lessors and grounding for maintenance.
The slide in SpiceJet's fleet comes as the airline has also lost ground in the domestic market, slipping to fourth place with a 3.9% share in March. Rival Akasa Air, with about 38 aircraft, has around 5% share, while IndiGo dominates with 63.3% and a fleet of over 440 aircraft. The Air India Group follows with about 26.5% market share and around 290 aircraft, according to data from the Directorate General of Civil Aviation (DGCA).
With just 21 planes, SpiceJet risks falling below the regulatory threshold for international operations, which requires airlines to have at least 20 aircraft or deploy 20% of capacity on domestic routes, whichever is higher.
The Gurugram-based airline, promoted by Ajay Singh, now operates 18 Boeing planes and three smaller turbo-props, according to two industry executives. Most of the Boeing aircraft are wet or damp-leased, while 39 aircraft remain grounded.
A wet lease involves leasing an aircraft with crew, maintenance, and insurance provided by the owner, usually for short-term capacity. In a damp lease, the lessor provides the aircraft, flight crew, and maintenance, but the lessee (airline) provides their own cabin crew.
"SpiceJet meets all applicable regulatory requirements for international operations. The airline has 54 aircraft on its Air Operator Permit (AOP)," a company spokesperson told Mint in an emailed response.
DGCA records show that the airline had 53 aircraft as of FY25.
"Our focus remains on steadily strengthening our operational fleet. We are actively working with MRO (maintenance, repair, and overhaul) partners, OEMs (original equipment manufacturers) and lessors to bring grounded aircraft back into service," the spokesperson said.
SpiceJet’s operational fleet has hovered around 21–25 aircraft over the past year. In September 2025, it had 19 operational aircraft—below the requirement—but continued international operations after receiving a temporary relaxation, as per the first executive said.
The second executive said the regulator may consider total fleet size, including grounded aircraft, allowing SpiceJet to continue international flying.
Incidentally, the airline’s ability to ramp up capacity has been constrained by a combination of operational and financial challenges.
There have been lease returns, maintenance delays and a cash crunch as key constraints on fleet expansion, said the second executive.
The airline spokesperson said SpiceJet was working towards a round of fundraising, but did not share the details.
"In parallel, the airline expects support under the ECLGS (extended credit-linked guarantee scheme) framework (a sovereign guarantee), which will further strengthen our financial position and help accelerate the return to service of a number of grounded aircraft. We are also working towards another fundraise, details of which will be shared at the appropriate time," the spokesperson said.
Several aircraft remain grounded due to shortages of spare parts, delayed maintenance and disputes with lessors and vendors, slowing efforts to restore capacity. The airline has returned multiple wet and damp leased aircraft in recent months, further reducing available capacity.
SpiceJet, post its December results, had said it would ramp up its fleet to 60 aircraft by December 2026, but progress has stalled.
Disruptions linked to the West Asia war since late February have affected key international routes such as Sharjah, Dubai, Jeddah and Bangkok, while high fuel costs and a weakening rupee have increased expenses.
Operations have dropped sharply. Weekly departures have fallen to about 700–900, from 1,568 in winter and 1,240 in summer 2025.
Scheduled operations to the UAE resumed from 3 May, the spokesperson said.
Financially, the airline remains under pressure. For the nine months ended December 2025, SpiceJet reported a loss of ₹1,138 crore on revenue of ₹3,541 crore.
“If an airline’s fleet drops below 20 aircraft, it is legally ineligible to operate international flights unless it receives special dispensation from the DGCA," said Nitin Sarin, managing partner at Sarin & Co, a law firm that specialises in aviation finance and regulatory services.
“If the shortfall is due to unforeseen circumstances beyond its control, the regulator may grant a limited extension, but technically and legally, international operations cannot continue below the 20-aircraft threshold,” he said.
Rohit Jain, managing partner at Singhania & Co, said the implications of falling below the threshold are clear.
“This may trigger regulatory action from DGCA or civil aviation ministry such as review, restriction, suspension or withdrawal of permissions. Typically, it will not be a self-executing shutdown, especially if the operator otherwise meets safety, airworthiness and AOC (air operator certificate) conditions. Legally, continuing international flying with fewer than 20 aircraft becomes difficult to defend,” Jain said.
Jain said the eligibility criteria speaks about “actual deployment”.
With limited financial headroom and persistent operational challenges, SpiceJet’s ability to quickly restore fleet strength remains uncertain, even as international operations remain critical to its business.