A Gulf-based airline has conducted preliminary due diligence to evaluate a potential acquisition of troubled carrier, SpiceJet, according to people familiar with the matter.
The exercise, carried out through an advisory firm a few months ago, is understood to be at an exploratory stage, with no formal proposal submitted so far. It is not immediately clear whether the airline is evaluating the acquisition of a controlling stake or the carrier in its entirety.
Queries sent to SpiceJet remained unanswered till the time of going to the press.
The interest is driven largely by strategic considerations. An acquisition would provide the Gulf carrier access to bilateral flying rights between India and the Gulf, one of the country’s busiest and most lucrative international aviation markets.
The prospective bidder also operates Boeing 737 aircraft, similar to SpiceJet’s fleet, offering operational and maintenance synergies.
“Gulf carriers have long been keen to deepen their presence in India but remain constrained by bilateral air service agreements that limit additional flying rights,” an aviation analyst said.
“Acquiring an Indian airline offers a strategic gateway into the market. A new owner could subsequently expand operations by inducting more aircraft and utilise the airline’s bilateral rights, subject to regulatory approvals and availability under the bilateral framework.”
The interest comes even as SpiceJet continues to navigate a fragile financial recovery. In the latest reported quarter (Q3 FY26), the airline posted a consolidated net loss of Rs 261 crore against a profit of Rs 20 crore a year earlier, despite a 14% increase in revenue to Rs 1,651 crore.
During the quarter, it settled liabilities worth Rs 476 crore through equity allotment to creditors. The company has also restored its net worth to positive territory following its qualified institutional placement and a series of creditor settlements, although accumulated losses of around Rs 9,000 crore and sizeable borrowings, lease liabilities and trade payables continue to weigh on its balance sheet.
The airline has not reported the January-March quarter earnings of FY26.
Operationally, the airline has also been under pressure. According to the Directorate General of Civil Aviation (DGCA), SpiceJet’s domestic market share declined to 2.5% in May from 3.4% in April after the exit of its wet-leased fleet and scheduled maintenance of several aircraft reduced available capacity.