SpiceJet looks to replace old planes; aircraft efficiency top priority: COO Sanjiv Kapoor

MUMBAI: Low-fare carrier SpiceJet is working with Bombardier to increase reliability of its Q400 turboprops and plans to return its old leased aircraft in order to improve efficiency.

“I have now really made it a mandate that aircraft have to be clean and you can see the difference,” the airline's chief operating officer, Sanjiv Kapoor, told ET, adding he was “still not satisfied with aircraft cleanliness” when he had joined.

The measures, if properly implemented, will help SpiceJet reduce maintenance cost, which account for 12 per cent of overall expenses, increase aircraft utilisation and cut fuel cost.

SpiceJet's management has now brought in a new set of procedures for “deep cleaning” of aircraft once a week. The airline has often been criticised for falling behind peer Indi-Go in aircraft cleanliness.

Dirt in an aircraft, apart from denting brand appeal, makes aircraft heavier and raises fuel consumption. Loss-making SpiceJet has been aggressively churning out flash sales to fill its planes. As a result, it clocked an industry-best flight occupancy level of over 81 per cent in June. T

he ready cash has helped it pay vendors and even announce an earlier promised salary hike for its pilots and crew. But to turn itself around from the record loss of Rs 1,003 crore last financial year, the airline needs to curtail costs and improve margins.

One of the ways to do it is to improve fleet efficiency. SpiceJet currently has a fleet of 52 planes, which includes 37 Boeing 737s and 15 Q400 planes. Experts say Bombardier's turboprops have increased SpiceJet's maintenance costs. “Their maintenance reliability was not where we would have liked them to be. But we are headed in the right direction now. We are working very closely with Bombardier on it,” said Kapoor, adding it will help cut maintenance costs.

For instance, in the previous contract with the aircraft maker, some of the spare parts being provided weren't what the airline required and what was needed wasn't part of the contract. That has been rectified. Kapoor said he wants to get rid of older planes in his fleet.

The airline has four-six planes that are 12-14 years old and Kapoor said he would welcome the opportunity to return them before their lease period expires. “If the opportunity exists for us to exit them in reasonable terms, we would look into them for sure,” he said.