New Delhi: Shares of SpiceJet experienced a significant surge on June 8 as the low-cost airline announced its partnership with FTAI Aviation, a renowned aftermarket provider of engine services. This collaboration aims to reduce maintenance expenses and minimize aircraft downtime for SpiceJet.
Under the agreement, FTAI Aviation, listed on the New York Stock Exchange, will lease up to 20 engines to SpiceJet, along with providing maintenance services. By leveraging FTAI Aviation’s expertise in engines, SpiceJet will have access to a steady supply of available engines, eliminating the need for frequent shop visits.
SpiceJet emphasized that this revitalization program will not only lower maintenance costs but also enhance the overall performance of the airline. The stock responded positively to the news, with a trading increase of approximately 4 percent on the Bombay Stock Exchange (BSE), reaching Rs 27.80 per share at 9:48 am.
It’s worth noting that SpiceJet has faced numerous challenges in the past year, including financial constraints, legal disputes, and regulatory obstacles, resulting in a decline of 41 percent in its stock value. However, the partnership with FTAI Aviation marks a crucial step for SpiceJet in recovering its fleet and ensuring smooth operations on new routes.
SpiceJet’s Chairman and Managing Director, Ajay Singh, expressed optimism about the collaboration, stating that it brings them closer to their goal of restoring the fleet and serving passengers effectively. The availability of quick and ready engine replacements will significantly reduce the grounded time of SpiceJet’s aircraft.
In addition to the partnership announcement, SpiceJet recently commenced its Haj operations on June 7. The airline operated special flights from Bhopal, Gaya, Vijayawada, Aurangabad, and Srinagar to facilitate travel for Haj pilgrims. SpiceJet has incorporated two wide-body A340 aircraft into its fleet for these operations. The airline plans to operate these special flights to Jeddah between June 7 and June 22, with return flights from Medina scheduled from July 17 to August 2.
