SpiceJet Raises Rs 3,000 Crore for Massive Fleet Expansion
SpiceJet is gearing up for an ambitious expansion plan, with CEO Ajay Singh revealing the airline’s intention to add 75 new aircraft to its fleet within the next two years. The expansion will be fueled by the recent Rs 3,000 crore raised through a Qualified Institutional Placement (QIP), a strategic move aimed at strengthening the airline’s operations.
According to Singh, this capital raise was aligned with their shareholder-approved target. “We had shareholder approval to raise Rs 3,000 crore, and we decided to go ahead with that amount. If necessary, we could have raised more, but we believe this is enough to support our expansion goals,” he said. The airline plans to grow its current fleet of 25-28 aircraft to over 100 by the end of the two-year period.
In addition to acquiring new planes, SpiceJet intends to bring in 40 to 45 aircraft from the secondary market, enhancing its operational capacity. Singh also mentioned the airline’s grounded fleet of around 30 aircraft, which he expects to reactivate by the end of 2025.
Reflecting on SpiceJet’s successful expansion in 2015, Singh is confident that the current aviation market offers favorable conditions for growth. “The market is strong, with impressive yields and growth. Plus, with lower oil prices, we see plenty of tailwinds that mirror the conditions in 2015 when SpiceJet grew substantially,” he noted.
The funds raised will not only be used for fleet expansion but also for addressing key financial obligations, including statutory payments, employee dues, and cleaning up the company’s balance sheet. This expansion is part of a broader strategy to enhance SpiceJet’s network and strengthen its financial position.
