SpiceJet (SG) has held preliminary talks with a Gulf-based airline over a potential acquisition, according to people familiar with the matter. An initial due diligence exercise has been carried out, with the move aimed at tapping into bilateral flying rights and shared operational systems as the Indian carrier continues to navigate a highly competitive domestic market.
Deal still in early stages
According to people familiar with the matter, the due diligence was reportedly carried out by a consultancy firm a few months ago, and talks remain at a preliminary stage, with no formal proposals submitted so far. As for now, it is not yet clear whether the Gulf carrier is pursuing a partial stake or the airline in its entirety. A deal would give the carrier a foothold in one of India’s densest and most lucrative international aviation markets. The prospective bidder is also said to operate Boeing 737 aircraft, the same family used by SpiceJet, which could offer some operational and maintenance synergies if talks progress.
Current SpiceJet Scenario
The interest comes at a delicate point in SpiceJet’s financial recovery. In Q3 FY26, the airline reported a consolidated net loss of Rs 261 crore, reversing a Rs 20 crore profit from the same period a year earlier, even as revenue rose 14% to Rs 1,651 crore.
During the quarter, SpiceJet cleared Rs 476 crore in liabilities through equity allotted to creditors, and its net worth has returned to positive territory following a qualified institutional placement alongside a string of creditor settlements. Even so, accumulated losses of roughly Rs 9,000 crore, along with sizeable borrowings, lease liabilities and trade payables, remain on its books. The airline has yet to report its January-March FY26 earnings.
Operationally, SpiceJet has also lost ground. Data from the Directorate General of Civil Aviation (DGCA) shows its domestic market share slipped to 2.5% in May, down from 3.4% in April, after the exit of its wet-leased fleet and scheduled maintenance on several aircraft cut into available capacity.
Would this Gulf-based airline be able to turn things around for SpiceJet? Let us know in the comments.
