Chinese aircraft leasing company ICBCIL Aviation Co. Ltd has initiated the process of deregistering four Boeing 737-8 MAX aircraft from SpiceJet through its special purpose vehicles Sky High LXXVIII Leasing Co. Ltd and Sky High LXXX Leasing Co. Ltd. According to Mint, the DGCA published notices on Monday, July 13, relating to repossession of these aircraft under the Irrevocable De-registration and Export Request Authorisation (IDERA) mechanism. The four aircraft whose deregistration has been sought are VT-MXA, VT-MXC, VT-MAX and VT-MXB. These lessors are special purpose vehicles owned by ICBCIL Aviation Co. Ltd, which is a wholly owned subsidiary of Industrial and Commercial Bank of China (ICBC). The DGCA had received these repossession requests on July 9 and emailed the concerned airline personnel on July 10, with notices uploaded to the website on July 13.
SpiceJet's operational performance has deteriorated significantly, with one out of every seven flights delayed by more than two hours in May 2026. According to official DGCA data, this represents the worst performance among India's large airlines and the worst for SpiceJet itself in five months. The delay rate has shown a steady decline throughout the year, rising from 7.2% in January to 15.75% in May, compared to 0.78% for IndiGo, 1.85% for Air India, and 1.49% for Akasa Air. A SpiceJet spokesperson acknowledged the challenges, stating "While any delay is regrettable, it is important to note that on-time performance can fluctuate over different periods depending on a range of operational and external factors." The airline has implemented measures including phased aircraft return to service, additional capacity induction, and closer coordination across operational teams to improve schedule reliability.
Facing financial and operational headwinds, SpiceJet is currently operating with a significantly reduced fleet and struggling to maintain market share. According to aviation database website Planespotters.net, the airline has just 11 aircraft in operation, while 42 planes are parked. This represents a substantial reduction from the airline's normal operational capacity, highlighting the operational challenges the carrier is currently facing. Data from UK-based aviation analytics firm OAG shows SpiceJet has 1,855 scheduled domestic departures in July, down about 28% from 2,578 departures a year earlier, indicating continued strain on its operations. As per the DGCA's last released May data, SpiceJet's domestic market share has fallen to below 3%, down from previous levels as passengers shift to rival carriers due to operational reliability concerns.
SpiceJet has been grappling with significant financial challenges, reporting a standalone net loss of ₹1,138.15 crore for the first nine months of fiscal year 2026 (FY26), compared to ₹266.8 crore in the year-ago period. The airline's standalone revenue from operations stood at ₹3,271.5 crore for the period ending December 31, 2025, down 14% over the year-ago period. The airline is yet to declare its FY26 annual results and January-March quarter (Q4) earnings. Legal experts caution that deregistration by the DGCA would bring down the fleet size of SpiceJet and could impact operations. As per Mint, "An Idera filing begins the statutory process for cancelling Indian registration and recovering/exporting the aircraft," removing a major practical obstacle to lessors taking possession and exporting the aircraft. Gagan Dixit from Elara Securities noted that "SpiceJet appears to be in survival mode as it grapples with prolonged financial stress," with the rising flight delays hurting operational reliability and brand perception.
