SpiceJet’s Expansion Plans
SpiceJet intends to have 100 aircraft by the end of 2026, its chairman and managing director Ajay Singh said, a day after the low-cost airline earned Rs 3,000 crore (about $360 million) through the sale of new shares.
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“SpiceJet is an airline that has strong fundamentals but was hamstrung by two black swan events one after the other – the worldwide grounding of Boeing 737 Max, followed by Covid pandemic,” Singh said.
“We have the infrastructure to relaunch a 100-strong fleet… We have airport slots, international traffic rights, pilots and crew, and maintenance infrastructure,” he explained.
“Most importantly, we have 30 aircraft on the ground, in a market which has significant supply constraints,” Singh said.
SpiceJet announced on Saturday that it has successfully executed a qualified institutional placement (QIP) with participation from prestigious funds including Tata Mutual Fund, Discovery Global, and Goldman Sachs. Following the recent share issuance, Singh now owns around 35% of the airline.
He stated that the recapitalisation was critical not only for the company, but also for India’s aviation market, which is rapidly becoming a duopoly between IndiGo and the Air India Group.
“The industry has a lot of room. What is vital is that we do not allow a duopoly to form and that the market remains competitive, with customers having a choice,” he stated.
SpiceJet was in severe need of finances after failing to pay statutory dues and payments to suppliers, including aircraft and engine lessors, some of whom had petitioned the courts to declare the airline bankrupt.
