DGCA deregisters SpiceJet's 2 Boeing planes, confirms no impact on operations

New Delhi:  SpiceJet's two Boeing 737-800 planes have been deregistered by aviation watchdog DGCA, with the no-frills carrier saying that both aircraft are being returned in the most efficient manner consensually. The Directorate General of Civil Aviation (DGCA) deregistered VT-SZK and VT-SYA on March 6 and 9, respectively, according to notices on the regulator's website. A SpiceJet spokesperson also said that the return of the two aircraft will not impact its operations.

Lessors can de-register a leased aircraft in case there's a default

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

"While one of the aircraft is grounded for a long period and was to be returned earlier, the other is being returned due to certain engine issues with lessor. Both aircraft are being returned in the most efficient manner consensually. This will have no impact on our operations," the spokesperson said in a statement on Friday.

SpiceJet facing multiple headwinds yet registering profits

Even though the budget airline has been grappling with multiple headwinds for the past many months, on February 24, it posted a multi-fold rise in net profit to Rs 107 crore in the 2022 December quarter on the back of better performance in passenger and cargo businesses.

The carrier is also set to tap the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore. On February 27, SpiceJet announced that Carlyle Aviation Partners will acquire a 7.5 percent stake in the airline by converting outstanding dues as well as snap up shareholding in the cargo business. The move will help the airline trim its debt by USD 100 million.

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