MUMBAI: SpiceJet, a prominent player in the Indian aviation sector, is poised for significant growth with the planned addition of ten aircraft to its fleet by the end of November.
The expansion follows the successful raising of Rs3,000 crore through a Qualified Institutional Placement (QIP) last month, highlighting the airline’s renewed momentum in an increasingly competitive market.
Of the ten new planes, seven will be acquired through leasing arrangements, while three previously grounded aircraft are set to return to service. Agreements for the leased planes have already been finalized, with full induction expected by November 15.
Notably, the airline has expedited the process, with two of the leased aircraft already arriving in India for immediate deployment. The phased reintroduction of grounded aircraft will begin, ensuring that operations remain uninterrupted as the airline scales its capabilities.
The QIP attracted a wide array of institutional investors, including notable entities such as Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd. This diverse backing not only underscores investor confidence in SpiceJet’s potential but also provides vital capital to enhance operational efficiency, invest in advanced technology, and facilitate market expansions.
Ajay Singh, Chairman and Managing Director of SpiceJet, said the importance of this fleet expansion in addressing the surging demand for air travel.
“The airline’s commitment to offering seamless, reliable and economical travel experiences, reiterating that the fresh capital would be pivotal in improving service quality and diversifying the route network.”
In a pivotal development, on September 24, SpiceJet announced a resolution of its dispute with Engine Lease Finance Corporation (ELFC), which had previously claimed $16.7 million. The amicable settlement reached, though undisclosed, signifies a proactive step towards eliminating potential financial burdens and enhances the airline’s operational stability.
On the stock market front, SpiceJet shares demonstrated positive momentum, trading with an 8.77 per cent gain at 11:30 AM on Tuesday, outpacing the modest increase of 0.62 per cent in benchmark indices. This reflects the market’s optimism regarding SpiceJet’s strategic decisions and its future performance.
