Indian Airline Grounded by Bangladesh: What You Need to Know

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Indian Airline Grounded by Bangladesh What You Need to Know

The government of Bangladesh has barred Indian airline SpiceJet from using its airspace. The move comes after the airline allegedly failed to pay outstanding air navigation charges. The restriction was reported by Indian media on Thursday.

As a result, SpiceJet has had to reroute several flights over northeast India, particularly those passing via Kolkata. These detours have added around 30 minutes to flight times and increased fuel costs for the airline.

Airlines are required to pay fees to countries whose airspace they use. The charges depend on the aircraft’s weight and flight duration. For a Boeing 737, commonly operated by SpiceJet, the fee is estimated at about $300 per flight. Reports indicate the airline has not paid these fees for more than six months, prompting the Civil Aviation Authority of Bangladesh to suspend overflight permissions. Authorities are also reportedly seeking interest on the delayed payments.

A SpiceJet spokesperson said the airline is actively engaging with Bangladeshi authorities. “These are routine industry issues, and we are working constructively toward a resolution,” the spokesperson said. “Flight operations remain unaffected, and we continue scheduled services in line with regulations.”

The restrictions come as SpiceJet continues to face financial challenges despite raising Rs3,000 crore in 2024. The airline planned to use the funds to reactivate grounded aircraft, but more than half of its fleet remains inactive.

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As of December, SpiceJet operated 33 aircraft, including 16 on short-term wet leases. This helped the airline expand its market share to 4.3 percent in December, up from 2.6 percent in October. The airline continues efforts to stabilize operations and manage rising costs amid regulatory hurdles from Bangladesh.

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