The decision by the Bangladesh government, resulting in higher fuel expenses, has added to woes for cash-strapped SpiceJet.
Airlines pay fees to countries for using their airspace, whether flying through it or landing in it. The charges vary on aircraft weight or duration of the flight. For a Boeing 737 aircraft, primarily used by SpiceJet, it is around $300.
People aware of the development said the airline has defaulted on payment of charges for over six months, leading Bangladeshi authorities to suspend SpiceJet’s permission for overflying. The Civil Aviation Authority of Bangladesh (CAAB) is also seeking interest on the delayed payments, they said.
A SpiceJet spokesperson said the airline is in communication with the Bangladeshi authorities over the charges.
“These are routine industry issues, and we are working constructively towards an early resolution,” the spokesperson said. “Our flight operations remain unaffected, and we continue to operate our scheduled services in line with regulatory requirements.”
A CAAB spokesperson didn’t respond to queries.SpiceJet has been struggling financially despite raising Rs 3,000 crore in 2024. While the airline intended to use the fresh funds to make its grounded aircraft operational, more than half of its fleet remains grounded.
As of December-end, it was operating around 33 aircraft including 16 inducted on short term wet lease. This has helped the airline increase its market share to 4.3% in December from 2.6% in October.
A large share of the fresh capital was deployed to clear pending statutory dues like goods and services tax (GST), and tax deducted at source (TDS).
The airline is trying to add aircraft on wet lease including four Boeing 737 Max – slated to join by May – and plans to ramp up its fleet size to 60 by December 2026.
SpiceJet posted a consolidated net loss of Rs 261.7 crore in the December quarter against a Rs 20.2 crore net profit a year earlier.
Chairman Ajay Singh said while legacy costs and external factors continue to weigh on expenses, the core business is strengthening. “With more aircraft in service, a sharper network focus and continued balance sheet repair, we are building a more resilient airline, step by step,” he said recently.