SpiceJet’s Ambitious Fleet Expansion: 10 New Aircraft by November

On October 8, 2024, SpiceJet Limited announced a major fleet expansion initiative aimed at enhancing its growth strategy. The airline is set to induct ten aircraft by the end of November, which includes the leasing of seven new planes and the reintroduction of three previously grounded aircraft. This expansion marks a significant step in SpiceJet’s ongoing efforts to improve its operational capacity and service offerings.

The airline has already finalised agreements for the leased aircraft, with plans for the full induction of all seven planes expected by November 15. Notably, two of these leased aircraft have already arrived in India and are scheduled for immediate operational integration. Additionally, SpiceJet will systematically reintroduce its grounded planes into service, with the first three expected to be back in operation before the end of November. 

This fleet expansion comes on the heels of SpiceJet’s successful Qualified Institutional Placement (QIP), which raised ₹3,000 crore. The QIP garnered strong interest from a diverse range of institutional investors, including prominent names like Goldman Sachs (Singapore) and Morgan Stanley Asia. In addition to the QIP proceeds, SpiceJet is set to receive an additional ₹736 crore from a prior funding round, further enhancing its financial stability.

The newly acquired capital will be instrumental in ungrounding existing aircraft, acquiring new planes, investing in technology, and expanding into new markets. SpiceJet is focused on restoring its reputation for reliability and efficiency, with the goal of providing passengers with improved connectivity and a broader array of travel options. 

In a related development, on September 24, SpiceJet resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement, further contributing to the airline’s strengthened financial position.

Commenting on this development, the 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.”

On October 8, 2024, the share price of SpiceJet Ltd opened at ₹57.21, touching the day’s high at ₹63.00, as of 11:19 AM on the BSE.

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