SpiceJet's Fleet Takes Off: 10 New Planes on the Horizon

SpiceJet’s Fleet Takes Off: 10 New Planes on the Horizon

ByPradeep Gocher Posted on

SpiceJet is set to significantly enhance its fleet size by November, adding 10 aircraft. This expansion is fueled by a recent Rs 3,000 crore QIP, enabling the airline to acquire seven new planes on lease and reintroduce three previously grounded aircraft into service. This strategic move positions SpiceJet for further growth and expansion in the aviation market.

SpiceJet's Fleet Takes Off: 10 New Planes on the Horizon

SpiceJet has leased seven new aircraft, which are scheduled for delivery by mid-November. Two of these planes have already arrived in India and will be immediately integrated into the airline’s operations. Furthermore, SpiceJet plans to reactivate its grounded aircraft in stages, with the first three set to resume service before the end of November.

Fund Raise for expansion: QIP

The Qualified Institutional Placement (QIP) garnered significant interest from a diverse group of institutional investors and funds. Prominent participants included global investment giants like Goldman Sachs (Singapore) and Morgan Stanley Asia, along with domestic funds such as Tata Mutual Fund and Discovery Global Opportunity Ltd.

The fresh infusion of capital will empower SpiceJet to reactivate its grounded aircraft, acquire additional planes, invest in cutting-edge technology, and expand its reach to new destinations. This strategic investment will fortify the airline’s position and drive its future growth

Chairman and Managing Director of SpiceJet, Ajay Singh said “This addition is crucial as we continue to meet the growing demand for air travel while strengthening our operational capabilities. With the capital raised, SpiceJet is well-positioned to offer improved services and an expanded route network. We are committed to delivering seamless, reliable, and affordable travel, and we are excited about the future for both the airline and our passengers,”

SpiceJet successfully resolved a longstanding dispute with Engine Lease Finance Corporation (ELFC) on September 24. The dispute, centered around a $16.7 million claim, was settled amicably for an undisclosed amount that fell below the initial demand. This resolution marks a significant step forward for SpiceJet as it continues to navigate challenges and focus on its operations.

In the morning session, SpiceJet shares were trading at a robust 8.77% higher than their previous closing price. This surge outpaced the broader market, as benchmark indices were only up by approximately 0.62%.