Budget airline SpiceJet is gearing up for significant expansion, planning to add 75 aircraft to its fleet within the next two years. This ambitious move is made possible by the recent completion of a Rs.3,000 crore Qualified Institutional Placement (QIP), as shared by CEO Ajay Singh.
Singh explained that the decision to raise Rs.3,000 crore aligns with the airline's strong expansion strategy, which aims to boost its current fleet of 25-28 aircraft to over 100 in the next two years. He said, “Since we had shareholder approval for Rs.3,000 crore, we decided to raise that amount. Had we needed to, we could have raised a significantly higher amount. But we believe this is sufficient to fund SpiceJet's expansion plan.”
In addition to the new aircraft, the airline plans to acquire 40 to 45 more planes from the secondary market in the coming years, further enhancing its operational capabilities.
Reflecting on the company’s successful growth in 2015, Singh is optimistic about achieving similar success in the current market, which he describes as full of opportunities. “Right now, the aviation market is strong. Growth is robust, and yields are high. There are also positive factors like low oil prices. SpiceJet has the experience of having done this in 2015,” he said.
SpiceJet Aims for Recovery Amidst India's Growing Aviation Market
SpiceJet is counting on India’s rapidly growing aviation market to support its recovery. Although the airline continues to operate, its market share dropped to only 2.3% in August, placing it sixth among domestic airlines. Before the COVID-19 pandemic in 2020, SpiceJet held approximately 15% of the market.
Earlier this month, SpiceJet announced it has an order for 147 Boeing 737 Max aircraft and is exploring widebody operations to enhance connectivity between Asia and Europe. In a separate interview on Wednesday, Singh mentioned that the airline aims to operate around 5,000 flights each month in the near future.