Why is SpiceJet losing market share to other airlines?

In the September ranking of market shares put out by the IATA, SpiceJet has fallen from second place to fourth place in terms of passengers travelling by SpiceJet. The problems at SpiceJet have been around for some time now and the prolonged pandemic only worsened these problems. While Indigo continues to lead, Air India has emerged as the clear second with Vistara also above SpiceJet.

One reason for the current situation is the falling passenger load factor or the PLF at SpiceJet. But there are bigger challenges at work for SpiceJet. The airline has to restore salaries, pay rentals to its lessors and clear dues to vendors. All these are putting a huge burden on SpiceJet. At the same time, there is fresh competition from Jhunjhunwala’s Akasa, revival of Jet Airways and Tatas consolidating their airline interests.