Twenty years of SpiceJet: The no-frills airline's journey through many highs and lows

Mint

23-05-2025

SpiceJet marks its 20th anniversary on May 24, 2025. From its modest beginnings in 2005 to becoming a household name in Indian aviation, the airline's journey has been nothing short of turbulent — filled with rapid growth, intense competition, financial turbulence, and resilience. However, the fact that SpiceJet started earlier than IndiGo, and IndiGo is now over 12 times its size, speaks a lot about the missed opportunities of SpiceJet. On the other hand, SpiceJet is one of the two carriers (the other being IndiGo) which has managed to survive as many years with the likes of Air Deccan, Sahara, Jet Airways, Kingfisher Airlines and Go Air not able to sustain the Indian aviation landscape, apart from many other smaller players.
SpiceJet took to the skies on May 23, 2005, with its first flight from Delhi to Ahmedabad. The airline was quick to expand and look for routes, both non-stop and one-stop, which were immensely popular. Its catchy tagline, 'Red.Hot.Spicy' set the tone for a bold and energetic brand in the making. It held some prime spots at major airports and offered competitive fares.
The airline grew rapidly in the late 2000s, expanding its fleet and adding new routes across India. However, like many carriers in the fiercely competitive Indian aviation sector, SpiceJet faced its share of headwinds — rising fuel costs, regulatory hurdles, and price wars took a toll.
In 2010, it changed hands from Ajay Singh to Kalanidhi Maran of the Sun Group. The expansion saw the airline focus on Chennai, move from a single fleet type to dual class, with the Bombardier Q400 turboprops being inducted. The airline was at the cusp of a major expansion, planning expansion with Blue Ocean Strategy. However, a debt-free company in 2011, the airline piled up debt quickly due to rising oil prices and market headwinds, coming to a near standstill in December 2014, grounding its fleet and alarming investors and passengers alike.
Ajay Singh returned to the helm as white knight, orchestrating a dramatic turnaround. Under his leadership, the airline renegotiated leases, cut costs, and refocused on profitable routes. SpiceJet began to stabilise and even diversify, venturing into cargo (SpiceXpress) and regional connectivity under the UDAN scheme, which was announced in 2016. The tailwinds looked favourable once more with the airline placing an order for the MAX aircraft with Boeing and being the second in India to take delivery. This would have set the airline on a different course with fleet renewal firmly in place and an MoU with none other than Emirates as a codeshare partner. Its regional arm helped connect underserved Tier-II and Tier-III cities, in alignment with the government's vision for accessible air travel.
The fall of Jet Airways was a high point of sorts for the airline, which saw an immediate opportunity to scale back to 2014 levels and go beyond in due course of time. With Jet Airways planes grounded in India, the lessors found a white knight again in the form of SpiceJet, which took 30 of former Jet Airways planes, along with pilots. This was followed by Vistara adding these former Jet Airways planes and crew. It became a win-win situation for everyone, the lessors, the staff and the airports. The government linked slots of Jet Airways to additional capacity, and by the end of 2019, within months of the fall of Jet Airways, the Indian skies were buzzing again with planes still showing remnants of Jet Airways livery and crisscrossing the country. This also coincided with the grounding of MAX after two deadly crashes.
What seemed like a masterstroke became the backbreaker for SpiceJet. It clearly was trying to gulp more than it can chew but was the opportunity which was presented. However, less than a year after the fall of Jet Airways and SpiceJet taking as much liability in the form of new planes and additional staff, the pandemic hit which grounded aviation in India and across the world.
The airline hardly managed to come out of this hit, with the financials being even worse than what 2014 had in store for the airline. The airline was hit by court cases along with liquidation petitions filed by lessors and others.
The airline has recovered partially by monetising SpiceXpress, the cargo arm, and attracting investments worth INR 3,000 crore last year from multiple investors. However, its market share has remained below 5 per cent in a market which has more than doubled since 2014, when it hit its first major setback. New entrants like Akasa Air have managed to have a larger presence at key airports. The newly raised funding has helped the airline retire some debt, but it is still struggling to get the capacity in the air as it had once thought and committed it would.
Sustenance has been the first goal for the airline, and it would hope that the base remains strong to build on it without any external shocks this time around.