Bangladesh has suspended airspace access for India’s SpiceJet over unpaid overflight fees, leading to longer flight times and increased distances on several of the carrier’s domestic routes, forcing the airline to reroute certain flights and potentially raising fuel costs.
According to media reports, the new government in Bangladesh has barred an Indian airline from using its airspace after allegedly failing to clear outstanding air navigation charges.
The restriction has compelled the low-cost carrier SpiceJet to reroute certain flights to northeast India, particularly those operating via Kolkata, adding nearly 30 minutes to flying time.
The move by the Bangladesh government is expected to raise fuel costs for the airline, which is already grappling with financial stress. Airlines are required to pay overflight fees to countries whose airspace they use, whether for transit or landing. These charges depend on factors such as aircraft weight and flight duration. For a Boeing 737 aircraft, commonly operated by SpiceJet, the fee is estimated to be around $300 per flight.
Reports said the airline has defaulted on payments for more than six months, prompting the Civil Aviation Authority of Bangladesh to suspend its overflight permissions. The regulator is also reportedly seeking interest on the delayed dues.
The development comes at a time when SpiceJet continues to face financial challenges despite raising Rs3,000 crore in 2024. The airline had planned to use the funds to reactivate grounded aircraft, but more than half of its fleet remains out of service.
As of the end of December, the carrier was operating around 33 aircraft, including 16 inducted on short-term wet lease. This helped it expand its market share to 4.3 percent in December from 2.6 percent in October.
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