The termination of the lease highlights the severe challenges facing the airline
SpiceJet has ceased operations of Boeing 737 Max aircraft after mutually terminating lease agreement with BOC Aviation.Three Boeing 737 planes are being ferried to the Philippines leaving SpiceJet with an operating fleet of 11 aircraft.BOC Aviation and SpiceJet declined comment.The development comes as SpiceJet sought more time from Delhi High Court to deposit ₹50 crore in connection with its dispute with the airline’s former promoter Kalanithi Maran.On Monday, it’s counsel Mukul Rohatgi informed the court about a delay in receipt of a second tranche under the Emergency Credit Line Guarantee Scheme. The matter is expected to be heard on September 21.Cash crunchOver the past several months, SpiceJet’s operations shrunk following a cash crunch. The airline has delayed salaries and vendor payments. Lessors have dragged airline to insolvency court and also repossessed planes for rent default.The airline’s domestic market share dropped to 1.6 per cent in July from 3.9 per cent in January. SpiceJet had lowest punctuality record among all airlines in July with only 35 per cent on time flights.SpiceJet received its first 737 Max aircraft in 2018 as a part of its $22 billion order for upto 250 planes. The airline took deliveries of only 13 737 Max planes.The global grounding of 737 Max planes following accidents in Ethiopia and Indonesia in 2019 was a setback. Operations restarted in 2021 and SpiceJet and Boeing also settled claims related to grounding. However, owing to financial challenges, SpiceJet was unable to scale up its 737 Max operations.Published on September 1, 2026
