SpiceJet plans significant expansion with 75 new aircrafts

25 Sep 2024 , 03:24 PM

SpiceJet’s expansion ambitions are set to begin, with the acquisition of 75 aircraft over the next two years through its recently finalised ₹3,000 Crore QIP, according to CEO Ajay Singh.

Singh commented that the decision to boost this amount was influenced by the airline’s aggressive expansion strategy, which aims to grow its current fleet of 25-28 aircraft to more than 100 within two years. 

“We opted to raise ₹3,000 Crores based on shareholder approval,” Singh said, that if necessary, they could have raised a far larger sum.”However, we believe that this money is sufficient to fulfil SpiceJet’s expansion goal, which is to increase from 25, 27, and 28 aircraft to more than 100 aircraft in two years.”

Furthermore, the airline intends to acquire 40 to 45 aircraft from the secondary market during the next few years, expanding its operational capacities.

SpiceJet now has approximately 30 grounded aircraft, which Singh hopes to be reactivated by the end of 2025.

Drawing on the company’s excellent development trajectory in 2015, Singh is confident in reproducing that success in the current market, which he characterises as ripe for opportunity.

At around 3.10 PM, SpiceJet was trading 5.54% lower at ₹62.38, against the previous close of ₹66.04 on NSE. The counter touched an intraday high and low of ₹64.50, and ₹60.60, respectively.

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