Jolt to Headwinds Facing SpiceJet as DGCA Deregisters its Two Boeing Aircrafts

New Delhi:  Aviation regulator Directorate General of Civil Aviation (DGCA) on Wednesday has deregistered two more SpiceJet aircrafts leased to the airline. 

According to a senior DGCA official, Boeing ​737-800 aircraft VT-SPU and Boeing 737-900ER aircraft VT-SGQ of the low-cost budget carrier have been deregistered under IDERA on August 31. 

With this, a total of six Boeing 737 aircraft of the budget carrier have been deregistered in August. The DGCA has deregistered these aircrafts of SpiceJet, which is facing headwinds, following non-payment of dues to lessors.

SpiceJet on Wednesday reported widening of net loss to Rs 789 crore in the June quarter. The revenue of the low-cost airline is adversely impacted due to high fuel prices and rupee depreciation. Following the net loss reporting, the budget carrier’ Chief Financial Officer Sanjeev Taneja resigned with effect from Wednesday. 

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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 Irrevocable De-registration and Export Request Authorisation (IDERA).

In July, the aviation regulator directed the SpiceJet airline to operate only 50 percent of flights in the wake of many of its planes facing technical issues.