The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Taral shah, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur.
Recently Spice Jet announced lowest air fare rate and marketed it as cheaper than train fare starting at Rs 599 on 11th February, 2015. After lot of trouble, reduction in the size of fleet and cancelation of contracts when Spice Jet reported loss of 2.75 billion rupees for this quarter, this was really surprising move from Spice Jet. Now today on 12th February when Irish aircraft leaser Babcock and Brown Aircraft Management has sought the return of six Boeing B737 aircraft and a payment of Rs 600 crore, there would be another nightmare for Spice Jet again.
SpiceJet has 17 leased Boeing 737s and 15 Bombardier Q400s it owns, but it is fighting court battles with leasers seeking repossession of up to 12 of the former type of aircraft apart from Babcock and Brown Aircraft Management. This Show if recent battle with Babcock and Brown Aircraft Management is much important for Spice Jet. If they lose this they might be facing serious consequences for the operation of business. They have already reduced their headcount by more than 2000 and now if this court battle goes against Spice Jet then it will be difficult turnaround for them.
On the other hand recently spokesperson of Spice Jet has announced to include more 9 Boeing 737s by 2015. He also predicted to strengthen relationship with leasers soon. My observation says that it will soon catch up with the full capacity and back on track soon. Thus these are two behaviours we can see and only time can show how it turns up.