SpiceJet, India’s second biggest budget carrier by market share, will return all its wet leased planes and replace them with those on dry lease as it looks at cutting costs and expanding its network.
A wet lease is a leasing arrangement where one airline provides an aircraft, complete crew, maintenance, and insurance to another airline, the charges are usually for hours operated. And leasing of an aircraft without a crew is considered a dry lease. Obviously making the wet lease more expensive for an airline.
SpiceJet, sources said, is set to replace all seven planes it has on wet lease. Additionally, the airline is planning to add three more Boeing 737 jets.
“We had wet-leased planes to address the short-term capacity shortage and to rebuild our network. That was a short term measure. The whole idea was that operations shouldn’t suffer and there should be no cancellations,” said a senior airline official.
SpiceJet operates a fleet of 26 Boeing 737s, 14 Bombardier Q400s and three Airbus planes at present. It had placed a $4.4 billion order for 42 B737 Max planes in 2014, deliveries for which are yet to begin. The airline has been planning to place another large order for jets.