SpiceJet to Expand Fleet with Acquisition of 10 Aircraft by November

SpiceJet, a major Indian airline, announced its plan to bolster its fleet by adding 10 new aircraft by the end of November. The news has had a positive impact on the company’s stock market performance, with shares rising over 9%, closing at 62.80 rupees on the Bombay Stock Exchange. Intraday trading saw the share price reach 63.00 rupees, marking a significant recovery from its 52-week low of 34 rupees on October 26, 2023.

The fleet expansion will include seven leased aircraft, with arrangements for these leases already completed. SpiceJet anticipates taking delivery of these planes by November 15, two of which have already arrived in India and are set to commence operations shortly. Additionally, three aircraft previously grounded due to ongoing operational challenges are planned to be brought back into the fleet, with all set to be operational by the end of November.

This expansion effort follows a recent fundraising initiative where SpiceJet secured 3,000 crore rupees through a Qualified Institutional Placement (QIP) in September. Esteemed investors such as Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ventures participated in the funding round, providing crucial financial support to the airline.

The airline has also managed to resolve a significant issue involving Engine Lease Finance Corporation (ELFC), reducing the financial burden from a 16.7 million-dollar claim. In addition, SpiceJet is expected to receive another 736 crore rupees from earlier funding efforts, which will aid in settling dues including a 71 crore rupee outstanding Goods and Services Tax and employee salaries from June to August.