SpiceJet
IATA ICAO Callsign
SG SEJ SPICEJET
Founded
  • 1994 (1994)
    (as ModiLuft)
  • 2004 (2004)
    (as SpiceJet)
Commenced operations23 May 2005 (2005-05-23)
HubsIndira Gandhi International Airport (Delhi)
Secondary hubsRajiv Gandhi International Airport (Hyderabad)
SubsidiariesSpiceXpress
Fleet size99
Destinations73[1]
Traded asBSE: 500285
NSE: SPICEJET
ISININE285B01017
HeadquartersGurgaon, Haryana, India[2]
Key people
RevenueDecrease ₹6,072.55 crore (US$760 million) (2021)[4]
Operating incomeDecrease ₹−1,087.19 crore (US$−140 million) (2021)[4]
Net incomeDecrease ₹−1,029.89 crore (US$−130 million) (2021)[4]
Total assetsDecrease ₹11,367.61 crore (US$1.4 billion) (2021)[4]
Total equityDecrease ₹−2,604.25 crore (US$−330 million) (2021)[4]
Employees14,578 (2021)[4]
Websitewww.spicejet.com

SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana. As of November 2023, it is the fourth largest airline in India by number of domestic passengers carried, with a market share of 6.2% and connects 73 destinations, including 60 Indian and 13 international from its bases at Delhi and Hyderabad.

Established as air taxi provider ModiLuft in 1994, the company was acquired by Indian entrepreneur Ajay Singh in 2004 and renamed to SpiceJet. The airline operated its first flight in May 2005. Indian media baron Kalanidhi Maran acquired a controlling stake in SpiceJet in June 2010 through Sun Group which was sold back to Ajay Singh in January 2015. The airline operates a fleet of Boeing 737 and Bombardier Dash 8 aircraft.

History

1984–1996: ModiLuft era

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.[5] 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.[5]

2005–2013: inception and expansion

In 2004, the company was acquired by Ajay Singh and the airline planned to restart operations as SpiceJet following the low-cost model.[5] SpiceJet leased two Boeing 737-800 aircraft in 2005 and planned to order 10 new aircraft for expansion.[6] SpiceJet opened bookings on 18 May 2005 and the first flight was operated between Delhi and Mumbai on 24 May 2005.[7] By July 2008, it was India's third-largest low-cost carrier in terms of market share after Air Deccan and IndiGo.[8] Indian media baron Kalanidhi Maran acquired 37.7% stake in SpiceJet in June 2010 through Sun Group.[9][10] 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.[11]

In 2012, SpiceJet suffered a loss of over ₹39 crore (US$4.9 million) owing to increase in global crude prices.[12] 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.[13] The Bombay Stock Exchange announced that ever since June 2011, SpiceJet had been suffering losses.[14] In 2012, Kalanidhi Maran increased his stake in the airline by investing ₹100 crore (US$13 million) in the airline.[15] The airline returned to profits at the end of the same year.[16] SpiceJet entered into an inter airline pact with Tigerair on 16 December 2013 which was scrapped in January 2015.[17]

2014–present: downturn and recovery

In January 2015, the Sun Group sold its entire shareholding and transferred control to Ajay Singh.[18] In September 2017, the airline placed an order for 25 Q400 turboprop aircraft.[19] In 2019, SpiceJet took over 30 aircraft that were grounded by Jet Airways.[20][21]

The airline posted net losses of US$34.6 million during the fiscal quarter ended 31 March 2021, as revenue fell by 28% annually to $294.8 million. The airline planned to raise funds to the tune of $337.2 million to ensure its long term sustainability.[22] In May 2022, Directorate General of Civil Aviation started a safety investigation into the company's aircraft following a series of incidents involving malfunctioning plane equipment.[23][24] In July 2022, DGCA imposed restrictions on the number of flights to be capped at 50% of the existent flights with strict monitoring.[25] As of November 2023, it is the fourth largest airline in India by number of domestic passengers carried, with a market share of 6.2%.[26]

Corporate affairs

The key trends for SpiceJet are (as of the financial year ending 31 March):

2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue[lower-alpha 1] (₹b) 63.9 53.8 52.1 62.7 78.8 92.5 1.32 59.9 76.0
Net profit (₹b) −10.0 −6.8 4.4 4.2 5.6 −2.5 −9.3 −9.9 −17.2
Number of employees 5,639 4,185 5,360 6,902 8,447 8,556 11,675 14,578 8,723
Number of passengers (m) 13 12 12 15 18 20 25 8 9
Passenger load factor (%) 72 81 91 92 95 93 92 77 80
Fleet size 58 34 42 49 60 76 114 98 88
References [27] [28] [29] [30] [31] [32] [33] [34] [35]

For FY2023, the company posted net losses of ₹15.0 billion.[36]

Ownership and structure

The company is publicly traded under NSE: SPICEJET, with a market capitalization of about ₹4,255 crore (US$530 million) as of January 2024.[37] On 30 March 2020, HDFC bought 3.4 crore shares of SpiceJet from the open market constituting 5.45% stake.[38]

Headquarters

SpiceJet is headquartered in Gurgaon, India.[2] Ajay Singh serves as the managing director of the airline since January 2015.[39] 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.[40] SpiceJet names all its aircraft with the name of an Indian spice.[41]

Subsidiaries

Launched in September 2018, SpiceXpress is the air cargo division of the airline.[42][43] The airline took delivery of its first 737-800 Boeing Converted Freighter (BCF) in September 2019, becoming the first South Asian carrier to induct the converted freighter into its fleet.[44] Spice Shuttle is a fully owned subsidiary of SpiceJet which operates sea planes and other shuttle airplane services.[45]

Destinations

As of January 2024, SpiceJet operated to 73 destinations, including 60 Indian and 13 international destinations.[1] It operates hubs at Delhi and Hyderabad, which is the primary base for its fleet of Bombardier Q400 aircraft.[46][47] After completing five years of flying, SpiceJet was allowed to commence international flights by Directorate General of Civil Aviation on 7 September 2010. SpiceJet launched flights from Delhi to Kathmandu and Chennai to Colombo and the first international flight took off on 7 October 2010 from Delhi.[48]

Codeshare agreements

SpiceJet has codeshare agreements with the following airlines:

Fleet

Current fleet

As of December 2023, SpiceJet operates the following aircraft:[51]

SpiceJet Fleet
Aircraft In service Orders Passengers Notes
C Y Total
Boeing 737-700 2 — — 144 144
3 149 149
Boeing 737-800 8 5 — 186 186 Older aircraft to be retired [52]
Deliveries from September 2023[53]
28 189 189
Boeing 737-900 1 — — 189 189
Boeing 737-900ER 4 — — 212 212
Boeing 737 MAX 8 13 142 — 189 189 To replace older 737-800s[54]

155 firm orders with 50 options[55]

De Havilland Canada Dash 8-400 10 — — 90 90
22 78 78
SpiceXpress Cargo fleet[56]
Boeing 737-700BDSF 3 — Cargo Launch customer of its type in India[57]
De Havilland Canada Dash 8-400F[58] 3 —
Airbus A340 2 —
Total 99 147

Fleet development

SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in March 2005, with deliveries scheduled up to 2010.[6] In November 2010, the airline ordered 30 Boeing 737-800s.[59] 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.[60]

In March 2014, the airline signed a US$4.4 billion deal with Boeing for the procurement of 42 737 MAX 8 aircraft.[61] 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.[62]

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.[63] The carrier planned to grow its operational fleet to 200 airplanes and expand regionally with the new 737 MAX family of airplanes.[64] In June 2017, the airline signed a letter of intent with Bombardier to purchase up to 50 Q400 aircraft for catering to growth in passenger traffic arising from its participation in the Indian government's UDAN regional connectivity scheme.[65]

In 2019, SpiceJet announced plans to induct 16 Boeing 737-800 NG to fulfill local and international demands due to the grounding of the Boeing 737 MAX fleet.[66] In May 2020, when Jet Airways ceased operations, the airline placed orders for six additional Boeing 737-800 NG and five Bombardier Q400 to cover the shortage.[67] In June 2023, SpiceJet announced plans to induct 10 Boeing 737 aircraft of which five would be 737 MAX aircraft to cater to the surge in passenger demand.[53]

Services

SpiceJet has moved away from the typical low-cost carrier service model of economy class-only seating.[68] The airline offers premium services under the name SpiceMax, whereby passengers can obtain additional benefits including pre-assigned seats with extra legroom; meals on board; priority check-in and boarding; and priority baggage handling; at a higher fare.[69] Otherwise SpiceJet does not provide complimentary meals in any of its flights. It does sell full in-flight meals on some flights.[68] SpiceJet operates its frequent-flyer programme but does not provide any in-flight entertainment options.[68] SpiceJet has partnered with Tripfactory and EaseMyTrip for selling holiday packages on its platform.[70][71]

Notes

  1. ↑ "total revenue"

References

  1. 1 2 "Route map". Spicejet. Retrieved 3 January 2024.
  2. 1 2 "SpiceJet Contact Information, SpiceJet Airlines". Spicejet. Archived from the original on 23 April 2013. Retrieved 14 September 2010.
  3. ↑ Stock Exchange Intimation dated November 11, 2020 for CFO Appointment (PDF) (Report). 11 November 2020. Archived from the original (PDF) on 27 February 2021. Retrieved 8 June 2021.
  4. 1 2 3 4 5 6 Annual Report - SpiceJet Ltd (PDF) (Report). 15 December 2021. Archived from the original (PDF) on 15 December 2021.
  5. 1 2 3 "Company History – SpiceJet". moneycontrol.com. Archived from the original on 2 January 2012. Retrieved 30 December 2011.
  6. 1 2 "India's Spicejet takes 10 Boeings". BBC News. Archived from the original on 5 April 2016. Retrieved 24 March 2016.
  7. ↑ "Spic(e)y flight: Delhi-Mumbai for Rs 1,599". Times of India. 10 August 2005. Archived from the original on 17 September 2016. Retrieved 24 March 2016.
  8. ↑ Shukla, Tarun (25 June 2008). "SpiceJet, Modi call truce; to sell 11.5 mn shares". Live Mint. Archived from the original on 5 April 2016. Retrieved 24 March 2016.
  9. ↑ "Kalanithi Maran to buy 37% stake in SpiceJet". The Economic Times. 11 June 2010. Archived from the original on 18 July 2010. Retrieved 30 August 2010.
  10. ↑ "Kalanidhi Maran buys 37.7 p.c. stake in SpiceJet". The Hindu. 13 June 2010. Archived from the original on 24 August 2010. Retrieved 8 August 2010.
  11. ↑ "SpiceJet order adds to Bombardier's India footprint". Reuters. Toronto, Canada. 9 December 2010. Archived from the original on 5 April 2016. Retrieved 24 March 2016.
  12. ↑ Sahu, Ram Prasad (8 February 2012). "Fund infusion critical for SpiceJet". Business Standard. Mumbai, India. Archived from the original on 8 February 2012. Retrieved 15 February 2012.
  13. ↑ "IndiGo, SpiceJet airlines violate mandatory safety norms: DGCA". India Today. 10 January 2012. Archived from the original on 11 March 2012. Retrieved 20 January 2012.
  14. ↑ "Standalone Result – 31-Dec-11". Bombay Stock Exchange. Retrieved 2 March 2012.
  15. ↑ "Marans to pump Rs 100 cr into SpiceJet, up stake to 48.6 pc". CNN-IBN. 3 March 2012. Archived from the original on 7 January 2015. Retrieved 24 March 2016.
  16. ↑ "SpiceJet returns to profit". The Hindu. 27 January 2013. Archived from the original on 27 May 2014. Retrieved 24 March 2016.
  17. ↑ Bhattacharya, Roudra (30 January 2015). "Tigerair scraps three-year inter-line pact with SpiceJet". Business Standard. New Delhi, India. Archived from the original on 5 April 2016. Retrieved 24 March 2016.
  18. ↑ Mishra, Laltendu (15 January 2015). "SpiceJet changes hand". The Hindu. Archived from the original on 15 January 2015. Retrieved 15 January 2015.
  19. ↑ "Bombardier inks $1.7 bn deal with SpiceJet for 50 jets". The Economic Times. 29 September 2017. Archived from the original on 3 March 2018. Retrieved 1 December 2023.
  20. ↑ "SpiceJet inducts 22 grounded Jet Airways planes; to add 8 more aircraft". Business Today. 30 May 2019. Archived from the original on 22 January 2022. Retrieved 1 December 2023.
  21. ↑ "SpiceJet Repaints Grounded Jet Airways' Boeing 737 Planes with Own Livery". News18. 22 April 2019. Archived from the original on 22 January 2022. Retrieved 1 December 2023.
  22. ↑ Kundu, Rhik (30 June 2021). "SpiceJet posts ₹257 cr quarterly loss, plans to raise ₹2,500 crore". mint. Archived from the original on 9 July 2021. Retrieved 8 July 2021.
  23. ↑ "DGCA springs into action after back-to-back incidents involving SpiceJet flights". India Today. 4 May 2022. Archived from the original on 17 June 2022. Retrieved 17 June 2022.
  24. ↑ Suri, Manveena; Marcus, Lilit (3 May 2022). "India's SpiceJet under investigation after severe turbulence injures passengers". CNN. Archived from the original on 17 June 2022. Retrieved 17 June 2022.
  25. ↑ Saurabh Sinha (27 July 2022). "SpiceJet News: DGCA puts SpiceJet under 'enhanced surveillance', orders airline to operate half of allowed flights this summer". The Times of India. Archived from the original on 29 July 2022. Retrieved 29 July 2022.
  26. ↑ November 2023 Domestic Traffic Reports (PDF) (Report). Directorate General of Civil Aviation. p. 3. Retrieved 1 December 2023.
  27. ↑ "SpiceJet Annual Report 13-14" (PDF). SpiceJet. Retrieved 18 November 2023.
  28. ↑ "SpiceJet Annual Report 14-15" (PDF). SpiceJet. Retrieved 18 November 2023.
  29. ↑ "SpiceJet Annual Report 15-16" (PDF). SpiceJet. Retrieved 18 November 2023.
  30. ↑ "SpiceJet Annual Report 16-17" (PDF). SpiceJet. Retrieved 18 November 2023.
  31. ↑ "SpiceJet Annual Report 17-18" (PDF). SpiceJet Annual Report 17-18. Retrieved 18 November 2023.
  32. ↑ "SpiceJet Annual Report 18-19" (PDF). SpiceJet. Retrieved 18 November 2023.
  33. ↑ "SpiceJet Annual Report 19-20" (PDF). SpiceJet. Retrieved 18 November 2023.
  34. ↑ "SpiceJet Annual Report 20-21" (PDF). SpiceJet. Retrieved 18 November 2023.
  35. ↑ "SpiceJet Annual Report 21-22" (PDF). SpiceJet. Retrieved 18 November 2023.
  36. ↑ "SpiceJet reports over INR 200 cr quarterly profit, lowers net loss in FY23 - ET TravelWorld". The Economic Times. 14 August 2023. Retrieved 1 December 2023.
  37. ↑ "SpiceJet Share Price". Money Control. Retrieved 7 January 2024.
  38. ↑ "HDFC Trustee Company buys 5.45% stake in SpiceJet". Money Control. 30 March 2020. Archived from the original on 1 April 2020. Retrieved 31 March 2020.
  39. ↑ Sinha, Saurabh (17 April 2015). "I am back at SpiceJet for long run: Ajay Singh". The Times of India. TNN. Archived from the original on 19 April 2015. Retrieved 29 June 2015.
  40. ↑ "SpiceJet Unveils New Brand Look and Slogan and Launches New Mobile App for Android and iOS as Part of its Ongoing 10th Anniversary Celebrations". SpiceJet (Press release). 6 June 2015. Archived from the original on 6 April 2016. Retrieved 24 March 2016.
  41. ↑ "SpiceJet's newest Boeing 737BG aircraft named "Red Chilli"". The Times of India. 21 January 2016. Archived from the original on 1 April 2016. Retrieved 24 March 2016.
  42. ↑ "SpiceJet's air cargo unit SpiceXpress looks to increase capacity, reach". Money Control. 17 October 2018. Archived from the original on 20 December 2018. Retrieved 25 January 2019.
  43. ↑ Majumder, Arindam (11 June 2021). "SpiceJet, IndiGo ready for new war zone as cargo biz continues upward swing". Business Standard India. Archived from the original on 29 June 2021. Retrieved 25 June 2021.
  44. ↑ Chua, Alfred (24 September 2019). "SpiceJet's cargo arm takes first 737-800BCF". FlightGlobal. Archived from the original on 28 November 2020. Retrieved 1 December 2023.
  45. ↑ "SpiceJet gets 3,000 bookings for seaplane service". Indian Express. 1 November 2020. Archived from the original on 2 December 2020. Retrieved 4 December 2020.
  46. ↑ "Bombardier to land Shamshabad airport in June". The Hindu. 9 April 2011. Retrieved 30 December 2011.
  47. ↑ "Profile on SpiceJet". CAPA Centre for Aviation. Archived from the original on 27 May 2016. Retrieved 7 June 2016.
  48. ↑ "SpiceJet begins flight service to Delhi, Mumbai". The Hindu. 28 September 2010. Retrieved 30 December 2011.
  49. ↑ "SpiceJet Enters Into Codeshare Agreement With Dubai-Based Emirates". NDTV. 25 November 2019. Archived from the original on 26 November 2019. Retrieved 1 December 2023.
  50. ↑ "Air Communications in the Persian Gulf". Gazetteer of the Persian Gulf, Oman and Central Arabia Online. 12 May 2015. doi:10.1163/2405-447x_loro_com_110023. Archived from the original on 12 March 2023. Retrieved 10 October 2020.
  51. ↑ "SpiceJet fleet". Spicejet. Retrieved 26 December 2023.
  52. ↑ "SpiceJet has said that it plans to replace all of its older Boeing aircraft with B737-8s". Archived from the original on 24 September 2022. Retrieved 24 September 2022.
  53. 1 2 "SpiceJet to induct 10 Boeing 737 from September". The Times of India. 9 June 2023. Retrieved 9 June 2023.
  54. ↑ "SpiceJet has said that it plans to replace all of its older Boeing aircraft with B737-8s". Archived from the original on 24 September 2022. Retrieved 24 September 2022.
  55. ↑ Sharma, Anu (20 January 2023). "How delayed fundraise and the MAX mess hurt SpiceJet". mint. Retrieved 26 December 2023.
  56. ↑ "India's SpiceJet adds first B737-800 freighter". 24 September 2019. Archived from the original on 4 April 2020. Retrieved 24 September 2019.
  57. ↑ "India's SpiceJet to add B737 freighters from 3Q18". CH-Aviation. 2 July 2018. Archived from the original on 4 April 2020. Retrieved 2 July 2018.
  58. ↑ "SpiceJet set to expand international cargo operations with A340 freighter". 17 August 2020. Archived from the original on 19 August 2020. Retrieved 18 August 2020.
  59. ↑ "Boeing, SpiceJet Finalize Order for 30 Next-Generation 737-800s". Boeing (Press release). 8 November 2010. Archived from the original on 7 April 2012. Retrieved 24 March 2016.
  60. ↑ "Bombardier Sells 15 Q400 NextGen Aircraft to India's SpiceJet". Bombardier (Press release). 9 December 2010. Archived from the original on 17 March 2013. Retrieved 24 March 2016.
  61. ↑ "Boeing, SpiceJet ink $4.4 Bn deal for 737-8 Max aircraft at India Aviation 2014". Bihar Prabha. 12 March 2014. Archived from the original on 1 January 2015. Retrieved 15 January 2015.
  62. ↑ "SpiceJet in talks with aircraft makers to purchase planes". The Economic Times. 27 August 2015. Archived from the original on 27 August 2016. Retrieved 24 March 2016.
  63. ↑ Kotoky, Anurag; Park, Kyunghee (14 January 2017). "Boeing loosens Airbus's India grip with $22 billion SpiceJet win". The Economic Times. Retrieved 15 January 2017.
  64. ↑ "Boeing 737: Orders and Deliveries (updated monthly)". Reuters. 19 June 2017. Archived from the original on 19 June 2017. Retrieved 19 June 2017.
  65. ↑ "Bombardier Signs a Letter of Intent with SpiceJet for up to 50 Q400 Aircraft - Bombardier" (Press release). Bombardier. Archived from the original on 9 September 2017. Retrieved 1 December 2023.
  66. ↑ "Will induct 16 Boeing 737-800 NG aircraft on dry lease: SpiceJet". The Economic Times. 12 April 2019. Archived from the original on 31 January 2020. Retrieved 27 March 2020.
  67. ↑ Prasad, Gireesh Chandra; Kundu, Rhik (20 April 2019). "SpiceJet, Air India step in to clean up after Jet Airways". Mint. Archived from the original on 20 November 2020. Retrieved 27 March 2020.
  68. 1 2 3 "General Travel FAQ's". SpiceJet. Archived from the original on 12 November 2013. Retrieved 13 November 2013.
  69. ↑ "Enjoy the SpiceMax experience with SpiceJet". SpiceJet. Archived from the original on 13 March 2016. Retrieved 13 March 2016.
  70. ↑ Chowdhury, Anirban (29 May 2014). "SpiceJet ties up with tripfactory for selling holiday packages". The Economic Times. Archived from the original on 8 February 2018. Retrieved 7 February 2018.
  71. ↑ "SpiceJet joins hands with travel portal EaseMyTrip". Moneycontrol. Archived from the original on 30 September 2021. Retrieved 30 September 2021.

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