SpiceJet is an Indian
low-cost airline headquartered in
Gurgaon,
Haryana. As of November 2023[update], 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.
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]
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.[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]
2014–present: downturn and recovery
In January 2015, the
Sun Group sold its entire shareholding and transferred control to Ajay Singh.[19] In September 2017, the airline placed an order for 25
Q400 turboprop aircraft.[20] In 2019, SpiceJet took over 30 aircraft that were grounded by
Jet Airways.[21][22]
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.[23] 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.[24][25] In July 2022, DGCA imposed restrictions on the number of flights to be capped at 50% of the existent flights with strict monitoring.[26] As of November 2023[update], it is the fourth largest airline in India by number of domestic passengers carried, with a market share of 6.2%.[27]
Corporate affairs
Business trends
The key trends for SpiceJet are (as of the financial year ending 31 March):
The company is publicly traded under
NSE: SPICEJET, with a market capitalization of about ₹4,255 crore (US$530 million) as of January 2024.[38] On 30 March 2020,
HDFC bought 3.4 crore shares of SpiceJet from the open market constituting 5.45% stake.[39]
Headquarters
SpiceJet is headquartered in Gurgaon, India.[2] Ajay Singh serves as the managing director of the airline since January 2015.[40] 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.[41] SpiceJet names all its aircraft with the name of an
Indian spice.[42]
Subsidiaries
Launched in September 2018, SpiceXpress is the air cargo division of the airline.[43][44] 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.[45] Spice Shuttle is a fully owned subsidiary of SpiceJet which operates sea planes and other shuttle airplane services.[46]
As of February 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.[47][48] 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.[49]
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.[60] 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.[61]
In March 2014, the airline signed a US$4.4 billion deal with Boeing for the procurement of 42
737 MAX 8 aircraft.[62] 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.[63]
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.[64] The carrier planned to grow its operational fleet to 200 airplanes and expand regionally with the new 737 MAX family of airplanes.[65] 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.[66]
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.[67] 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.[68] 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.[54]
Services
SpiceJet has moved away from the typical low-cost carrier service model of
economy class-only seating.[69] 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.[70] Otherwise SpiceJet does not provide complimentary meals in any of its flights. It does sell full in-flight meals on some flights.[69] SpiceJet operates its
frequent-flyer programme but does not provide any
in-flight entertainment options.[69] SpiceJet has partnered with Tripfactory and
EaseMyTrip for selling holiday packages on its platform.[71][72]
Collaborations
SpiceJet partners with
CleverTap to enhance customer experience by delivering personalized and contextual communication across its web and mobile channels, July 23.[73]
Mankind Pharma partners with SpiceJet to elevate brand awareness through plane displays, Sep 23.[74]
Ajay Singh, the Chairman and Managing Director of SpiceJet, in collaboration with Busy Bee Airways, has placed a joint bid for the struggling airline
GoFirst, Feb 24.[75]
Notes
References
^
ab"Route map". Spicejet. Retrieved 3 January 2024.