<img width="1024" height="592" src="https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?quality=80&strip=all&w=1024" class="attachment-medium_10 size-medium_10 wp-post-image" alt="" srcset="https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg 2482w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=768,444 768w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=50,28 50w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=160,92 160w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=320,185 320w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=640,370 640w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=940,543 940w, https://cms.qz.com/wp-content/uploads/2019/05/spicejet-new-e1558938911451.jpg?resize=1600,924 1600w" sizes="(max-width: 1024px) 100vw, 1024px" /><p>India&#8217;s airlines have been <a href="https://qz.com/india/1605218/jet-airways-share-price-falls-as-indigo-spicejet-gain-on-bse/">making the most out of</a> the vacuum created by the grounding of the country&#8217;s oldest <a href="https://qz.com/india/1597773/indias-jet-airways-cancels-all-flights-from-tonight/">private carrier ,Jet Airways,</a> over a month ago.</p>
<p>Almost all of them have been <a href="https://www.businesstoday.in/sectors/aviation/indigo-and-rivals-squabble-over-jet-airways-slots/story/348226.html">vying for Jet&#8217;s prime slots</a>, expanding their fleets, and adding new routes. It is budget carrier SpiceJet, though, that is poised to score most, according to a recent report by the investment management firm JM Financial.</p>
<p>The sector watchdog, the directorate general of civil aviation (DGCA), has allocated 130 airport slots from Jet&#8217;s portfolio to the airline, including 68 prime slots at Mumbai. This is higher than the number of such slots wrested by any airline, including market leader Indigo&#8217;s 120.</p>
<p>&#8220;Availability of additional slots will aid SpiceJet to optimally utilise its increased fleet size,&#8221; read the JM Financial report.</p>
<p>Yesterday (May 26), the no-frills carrier added its <a href="https://www.livemint.com/companies/news/spicejet-adds-100th-plane-to-fleet-fourth-domestic-airline-to-do-so-1558865501760.html">100th aircraft</a><span style="display: inline !important; float: none; background-color: transparent; color: #333333; cursor: text; font-family: 'PT Serif',serif; font-size: 16px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; -webkit-text-stroke-width: 0px; white-space: normal; word-spacing: 0px;"> to its fleet,</span> becoming the fourth domestic airline to do so after IndiGo, Jet Airways, and state-owned Air India. &#8220;SpiceJet has added 23 planes and over a 100 new flights, most of them connecting the key metros of Mumbai and Delhi, in just over a month&#8217;s time,&#8221; it said in a statement.</p>
<p>Aiding the expansion has been the fact that SpiceJet and Jet Airways both operate Boeing aircraft. Since Jet&#8217;s grounding, 20 aircraft from its fleet has been handed over to SpiceJet by lessors.</p>
<p>&#8220;In the next two years, Indigo, SpiceJet, GoAir are expected to add 94, 42, and 25 aircraft (respectively), while Vistara and Air Asia may add 20 each,&#8221; JM Financial said in its note. Despite lagging IndiGo in fleet expansion, the firm expects SpiceJet to clock &#8220;disproportionate growth (in profitability)&#8221; relative to its current size.</p>
<p>&#8220;SpiceJet has an order of 155 Boeing 737 MAX aircraft. The planes are 20% more fuel efficient than the Boeing 737 NG aircraft (which dominates its current fleet), with 8% lower operating cost per seat,&#8221; the note explained.</p>
<p>Even though <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/boeing-737-max-to-be-grounded-fully-by-early-evening-today-dgca-officials/articleshow/68385633.cms">Boeing 737 MAXs are grounded</a> over safety concerns, JM Financial expects the ban to be lifted in the second quarter of the current financial year.</p>
<p>Being a key player in the Indian government&#8217;s regional connectivity scheme UDAN has also benefited SpiceJet. <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/whats-ailing-the-indian-aviation-industry/articleshow/68970564.cms?from=mdr">Around 21% of</a> its 1,10,220 flights operate on monopoly routes under the scheme.</p>
<p>SpiceJet plans to induct Bombardier Q400 aircraft will aid regional growth. &#8220;The new Q400 aircraft with 90 seats (versus 78 seats for older aircraft) will help size-up demand in regional routes,&#8221; according to JM Financial.</p>
<h2>IndiGo perched on top</h2>
<p>Even then, SpiceJet has a long way to go.</p>
<p>IndiGo is still the industry leader, flying half of all domestic passengers in April, according to <a href="http://dgca.nic.in/reports/Traffic-ind.htm">DGCA data</a>. SpiceJet&#8217;s and Air India&#8217;s market share stood at 13.1% and 13.9%, respectively.</p>
<p>&#8220;With 100 aircraft, SpiceJet has definitely scaled up. However, to become the market leader it still has a long way to go, especially in order to keep up with an airline like IndiGo,” said Ashish Nainan, an aviation analyst at rating agency CARE Ratings.</p>
<p>Experts believe the real picture of who benefits from Jet&#8217;s crisis will emerge only when both the airlines post their earnings for the January-March period next week.</p>
<p>“Given the current situations of debt-laden Air India, the two biggest market players are IndiGo and SpiceJet. In the March quarter earnings, it’s expected that both the airlines will put up a great show,” an analyst who does not wish to be named told Quartz.</p>