Commercial Aviation
SpiceJet to Lease Five Boeing 737 Aircraft by October 2025
SpiceJet plans to lease five Boeing 737s by October 2025 to expand capacity and modernize its fleet amid India’s growing aviation market.
SpiceJet, one of India’s prominent low-cost carriers, has announced plans to lease five Boeing 737 aircraft by October 2025. This move comes as part of the airline’s broader strategy to modernize its fleet and meet increasing passenger demand through early summer 2026. The leased aircraft will be integrated under a damp lease arrangement, allowing SpiceJet to scale operations quickly and efficiently.
India’s aviation sector is experiencing rapid growth, with domestic and international passenger traffic on the rise. SpiceJet’s decision to expand its fleet is aligned with this industry trend and reflects the airline’s intent to remain competitive against larger players like IndiGo and the Tata Group-owned Air India. The damp lease model offers a cost-effective and flexible approach to capacity expansion, particularly critical for an airline navigating financial recovery.
In this article, we explore the implications of SpiceJet’s fleet expansion, the operational and strategic benefits of damp leasing, and how this move fits into the broader context of India’s aviation boom.
Damp leasing is a hybrid leasing model where the lessor provides the aircraft and flight crew, while the lessee, in this case, SpiceJet, manages the cabin crew and operational logistics. This model allows for faster deployment of aircraft without the full operational burden and long-term financial commitment of a dry lease.
SpiceJet’s decision to lease five Boeing 737 aircraft under this model reflects a tactical move to address short-term capacity needs while maintaining operational control. According to reports, these aircraft are expected to join the fleet by October 2025, in time for the peak winter travel season and early summer 2026 surge.
By choosing the damp lease model, SpiceJet gains flexibility in fleet management and can quickly respond to market demand fluctuations. The arrangement also supports the airline’s ongoing efforts to modernize its fleet, which includes ungrounding Boeing 737 MAX 8 aircraft and retiring older 737-800s.
“This addition will significantly strengthen our fleet and enable us to deliver a superior flying experience… We are actively exploring further fleet additions.” — Debojo Maharshi, Chief Business Officer, SpiceJet
As of mid-2025, SpiceJet operates a fleet of 53 aircraft, including 29 Boeing 737s and 24 De Havilland Dash 8s. Many of the 737-800s in its fleet are over 18 years old, raising concerns about fuel efficiency and maintenance costs. The airline has been working to unground its Boeing 737 MAX 8 aircraft, which offer improved fuel efficiency and lower emissions.
The five new Boeing 737s slated for induction will not only address short-term demand but also support the airline’s long-term fleet renewal strategy. SpiceJet has stated its ambition to reach a fleet size of 100 aircraft by 2026, a significant increase from its current numbers. Fleet modernization is a critical component of SpiceJet’s recovery plan. The airline recently raised ₹400 crore through a Qualified Institutional Placement (QIP), part of which is earmarked for restoring and expanding its fleet.
India is currently one of the fastest-growing aviation markets in the world. According to data from the Directorate General of Civil Aviation (DGCA), domestic passenger traffic grew by 7.6% in FY25, while international traffic expanded by 14.1%. These figures underscore the increasing demand for air travel across the country.
Projections suggest that India’s total Commercial-Aircraft fleet could grow from 941 in 2025 to over 3,000 by 2047. This growth is driven by rising disposable incomes, expanding middle-class demographics, and improved airport infrastructure across Tier-2 and Tier-3 cities.
In this context, SpiceJet’s fleet expansion aligns with broader industry trends. Competitors like IndiGo and Air India have already placed large aircraft orders to capture future demand. SpiceJet’s damp lease model provides a more agile alternative, allowing the airline to scale up without overextending financially.
SpiceJet operates in a highly competitive environment, dominated by IndiGo and the Tata Group’s Air India. Both rivals have substantial financial backing and robust expansion plans. To remain relevant, SpiceJet must leverage operational efficiency, strategic route planning, and customer experience improvements.
The leased Boeing 737s are expected to be deployed on metro and regional routes, including key hubs like Delhi, Chennai, Hyderabad, and Kolkata. These routes are crucial for maintaining market share and optimizing aircraft utilization.
SpiceJet’s expansion strategy also includes discussions with additional lessors for more aircraft. This phased approach allows the airline to test market response and adjust capacity accordingly, without being locked into long-term commitments.
“India is projected to surpass China in passenger growth by 2026, driven by low per-capita air travel penetration and economic expansion.” — Industry Analysts
SpiceJet’s financial health has been under scrutiny in recent years, with mounting operational costs and legacy debts. However, the airline has taken steps to stabilize its balance sheet, including debt restructuring and equity infusion through QIP. The damp lease model is particularly advantageous in this scenario. It reduces upfront capital expenditure and allows SpiceJet to focus on revenue generation and operational efficiency. Additionally, the inclusion of flight crew from the lessor ensures smoother onboarding and reduces training costs.
Operationally, the new aircraft will help improve on-time performance, reduce maintenance downtime, and enhance passenger experience. These improvements are essential for rebuilding customer trust and brand reputation.
SpiceJet’s decision to lease five Boeing 737 aircraft under a damp lease agreement marks a significant step in the airline’s recovery and growth strategy. The move addresses immediate capacity needs, supports fleet modernization, and aligns with India’s booming aviation sector.
As the airline continues to negotiate additional leases and unground existing aircraft, its ability to adapt to market dynamics will be crucial. By leveraging flexible leasing models and focusing on operational efficiency, SpiceJet aims to reclaim its position in one of the world’s most competitive aviation markets.
What is a damp lease? When will the new Boeing 737s join SpiceJet’s fleet? Why is SpiceJet expanding its fleet now?
SpiceJet’s Strategic Fleet Expansion: Leasing Boeing 737 Aircraft for Growth
Understanding the Damp Lease Strategy
Fleet Composition and Modernization Goals
India’s Aviation Market: A Contextual Overview
Competitive Dynamics and Market Positioning
Financial and Operational Considerations
Conclusion
FAQ
A damp lease is a leasing arrangement where the lessor provides the aircraft and flight crew, while the lessee (SpiceJet) supplies the cabin crew and handles operations.
The five aircraft are expected to be inducted by October 2025, ahead of the peak winter travel season.
The airline aims to meet rising passenger demand, modernize its aging fleet, and compete more effectively in India’s growing aviation market.
Sources
Photo Credit: SpiceJet