A SpiceJet aircraft.
Credit: PTI File Photo
By Satviki Sanjay
SpiceJet Ltd., which raised 30 billion rupees ($359 million) last week in an institutional share sale, plans to add 75 aircraft to its fleet over the next two years to fuel the carrier’s domestic expansion.
The embattled Indian budget airline aims to get 30 of its planes that are currently grounded back in the skies by the end of 2025 and purchase as many as 45 jets from the secondary market using funds raised from the share sale, Managing Director Ajay Singh told local media ET Now on Wednesday.
The carrier also plans to become debt free by using the proceeds to make outstanding statutory payments and pay employee dues, as well as settle with lessors, Singh said.
SpiceJet’s financial woes mean the airline has several overdue payments to airports. It’s also been forced to furlough staff and withhold mandatory social security payments. Auditors have raised concerns about tax payments while India’s aviation regulator is increasing scrutiny of the carrier due to its financial instability.
The airline is betting India’s rapidly expanding aviation market can underpin its recovery. SpiceJet is still flying but its market share fell to just 2.3 per cent in August, ranking it sixth among local airlines. It used to command around 15 per cent of the market just prior to Covid in 2020.
SpiceJet said earlier this month that it has an order book of 147 Boeing Co. 737 Max aircraft and is considering widebody operations for Asia-Europe connectivity. Singh in a separate interview on Wednesday said the carrier aims to be operating around 5,000 flights a month in the near term.