New Delhi, Feb 20 (.) The Civil Aviation Authority of Bangladesh (CAAB) has formally prohibited SpiceJet from operating through its airspace.
The move follows reports that the airline did not settle several months of outstanding air navigation dues, compelling its flights to operate on longer alternative routes and driving up operational expenses.
Industry sources suggest that SpiceJet has failed to make overflight and air navigation payments for over six months.
The dues cover services such as air traffic control (ATC), communication systems, and navigational support, and generally amount to around $300 per flight for a Boeing 737 aircraft, which forms the core of SpiceJet’s fleet.
Sources say SpiceJet has not cleared its overflight and air navigation dues for over six months.
The charges, covering air traffic control (ATC), communication systems, and navigational support, generally amount to about $300 per flight for a Boeing 737, the largest component of SpiceJet’s fleet.
The restriction has immediate operational consequences for SpiceJet’s network, especially affecting its services in Northeast India.
Flights operating from Kolkata to cities like Guwahati, Imphal, and Agartala typically reduce travel time by passing through Bangladeshi airspace.
“We are in continuous discussions with the concerned authorities regarding operational and procedural matters, including navigation-related dues. These are routine industry issues, and we are working constructively to achieve an early resolution. Our flight operations remain unaffected, and we continue to run our scheduled services in accordance with regulatory requirements,” the spokesperson said in a statement.
An email seeking comments from the Civil Aviation Authority of Bangladesh (CAAB) on the matter did not receive an immediate response.
During afternoon trading, shares of SpiceJet were down nearly 1 per cent at Rs 16.81 each on the BSE.
Last week, SpiceJet reported a loss of Rs 269.27 crore for the quarter ended December 2025, as elevated expenses and one-time costs weighed on the budget carrier’s bottom line.
On one hand, SpiceJet is yet to clear its pending dues to Bangladesh, while on the other, the airline has signed a Memorandum of Understanding (MoU) to expand its aircraft capacity.
SpiceJet has secured an MoU for the induction of 10 aircraft, with its capacity expected to more than double this year. The airline doubled its capacity in the last quarter and is targeting 225 crore available seat kilometres and over 300 daily flights by winter 2026.
The development comes after the board’s approval last week for a phased expansion of the fleet to 60 aircraft, through a combination of wet leases and the gradual return of grounded planes to service.
The Airline’s turnaround has accelerated in recent months. The carrier doubled its capacity in the last quarter, with available seat kilometres (ASKMs) climbing from about 55 crore to 105 crore, signalling a significant expansion in its network footprint.
Building on this momentum, SpiceJet aims to more than double its capacity this year, targeting 220 crore available seat kilometres by winter 2026 while operating over 300 daily flights across its network.
The expansion is designed to enhance connectivity, boost operational reliability, and cater to robust passenger demand, while adhering to a disciplined and sustainable growth strategy.
. DSV SAS .