DGCA Deregisters SpiceJet's Two Boeing 737 Max Planes, Airline Says No Impact On Ops

DGCA has taken back two Boeing 737s of SpiceJet under IREDA, although the carrier claims that deregistration will not affect operations.

DGCA Deregisters SpiceJet's Two Boeing 737 Max Planes, Airline Says No Impact On Ops

Two Boeing 737-800 aircrafts of the budget air carrier SpiceJet have been deregistered by the aviation watchdog - DGCA. The carrier has confirmed that the return of these aircrafts will not hamper operations. The Directorate General of Civil Aviation (DGCA) deregistered VT-SZK and VT-SYA on March 6 and 9, respectively, according to notices on the regulator's website. Under the Cape Town Convention, lessors and lenders can seek deregistration of a leased aircraft in case there is a default. Such requests are done under the Irrevocable De-registration and Export Request Authorisation (IDERA). "While one of the aircraft is grounded for a long period and was to be returned earlier, the other is being returned due to certain engine issues with the lessor.

Both aircraft are being returned in the most efficient manner consensually. This will have no impact on our operations," the spokesperson said in a statement on Friday. The number of aircraft in SpiceJet fleet could not be immediately ascertained. As many as six Boeing 737 aircraft of the carrier were deregistered in August last year.

Even though the budget airline has been grappling with multiple headwinds for the past many months, on February 24, it posted a multi-fold rise in net profit to Rs 107 crore in the 2022 December quarter on the back of better performance in passenger and cargo businesses. The carrier is also set to tap the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore.

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On February 27, SpiceJet announced that Carlyle Aviation Partners will acquire a 7.5 per cent stake in the airline by converting outstanding dues as well as snap up shareholding in the cargo business. The move will help the airline trim its debt by USD 100 million. Shares of SpiceJet fell nearly 1 per cent to close at Rs 35.20 apiece on the BSE on Friday.