Budget airline SpiceJet is eyeing network expansion to Vietnam, as well as destinations in the Middle East, on the back of new leased aircraft induction.
Speaking to media, sources said that the airline has approached the regulator for permission to start new domestic as well as international flights from the winter schedule.
“While most of the 18 Boeing 737 aircraft will be deployed on domestic routes, some have been earmarked for international expansion,” industry sources said.
“The airline has sought permissions for flights to Vietnam, Sharjah, Jeddah and a few other destinations. These flights include new operations and frequencies.”
Accordingly, Vietnam will be a new destination for the airline, sources said, adding that operations to Sharjah will be restarted after many years.
“Frequencies will be increased to Jeddah, and flights from some new domestic destinations will be started to Jeddah,” sources said.
Besides the newly leased 737 aircraft, the airline plans to lease out A340 aircraft for international destinations with heavy traffic volume.
SpiceJet has signed lease agreements for the induction of 18 Boeing 737 aircraft, strengthening its fleet ahead of the Winter Schedule 2025.
The decision to lease aircraft has been linked to meeting the rising demand for air travel during the upcoming festive and winter season.
Some of these aircraft are scheduled to join the fleet starting October 2025.
Furthermore, the airline plans to bring back grounded aircraft after conducting required servicing and maintenance work.
Notably, SpiceJet has secured an $89.5 million liquidity boost through a settlement agreement with aircraft lessor Carlyle Aviation Partners.
The settlement unlocks $79.6 million in cash maintenance reserves for future aircraft and engine maintenance.
Besides, the airline has received another $9.9 million in cash maintenance credits to offset its lease obligations.
Under the settlement, the lessors shall restructure certain lease obligations totalling $121.18 million in conjunction with the issuance of equity shares aggregating to $50 million.
SpiceJet had reported a net loss of ₹238 crore for the first quarter of 2025-26 on the back of subdued leisure travel demand.
The airline had reported a net profit of ₹150 crore in Q1FY25. Presently, industry estimates showed that SpiceJet only had 21 of its 53 aircraft in operation. The airline did not respond when contacted.
