Budget carrier SpiceJet on Tuesday said it is set to significantly expand its fleet by the end of November with the induction of 10 aircraft, marking a major step in the airline’s growth plans. Seven of these aircraft will be acquired on lease, while three previously grounded SpiceJet planes are being reintroduced into service.
Following this, shares of Spicejet jumped nearly 9 per cent to hit Rs 63 apiece on the BSE. As on 11:35 am, the shares were trading higher by Rs 4.64 or 8.06 per cent at Rs 62.20 apiece on the BSE.
“The airline has already signed agreements for the leased aircraft, with the full induction of all seven planes expected by November 15. Two of these leased aircraft have already arrived in India and are scheduled for immediate induction. SpiceJet will also operationalise its grounded planes in phases, with the first three set to re-enter service before the end of November,” Spicejet said in a statement.
The move comes after the airline recent cleared its pending salaries till August, GST dues and provident fund (PF) dues. The payment clearances come after SpiceJet recently raised Rs 3,000 crore through qualified institutional placement (QIP).
The QIP attracted a diverse range of top-tier institutional investors and funds, including marquee names such as Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.
In addition to the QIP, Spicejet is set to receive an additional Rs 736 crore from a previous funding round, further bolstering its financial stability and growth trajectory.
“The fresh capital raised will play a key role in ungrounding SpiceJet’s existing aircraft, acquiring new planes, investing in technology, and expanding into new markets. The airline remains focused on restoring its reputation for efficiency and reliability, ensuring passengers benefit from improved connectivity and access to a wider range of travel options,” Spicejet stated.
Ajay Singh, chairman and managing director of SpiceJet, 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.”
On September 24, SpiceJet announced it had resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC had previously claimed $16.7 million, and the settlement has been reached for an undisclosed amount, which is lower than the initial claim. This resolution marks another significant step towards strengthening SpiceJet’s financial health.
SpiceJet is facing several insolvency petitions from creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation at NCLT and the appellate tribunal NCLAT.
