SpiceJet, the budget airline, is set to embark on an ambitious expansion, aiming to add 75 new aircraft to its fleet over the next two years. This move is facilitated by a recent Rs 3,000 crore Qualified Institutional Placement (QIP), according to CEO Ajay Singh, in a conversation.

Singh highlighted that the decision to raise this amount aligns with the airline’s strategic plan to expand its fleet from the current 25-28 aircraft to over 100 within two years.

"Given our shareholder approval for Rs 3,000 crore, we chose to raise the full amount," Singh stated. "We could have raised even more if necessary, but we believe this funding is sufficient to support SpiceJet's expansion strategy, moving from our current fleet size to over 100 aircraft in the next two years."

In addition to acquiring new planes, SpiceJet plans to bring in 40 to 45 aircraft from the secondary market over the coming years, bolstering its operational capabilities.

Currently, around 30 of SpiceJet's aircraft are grounded, but Singh expects these to be operational again by the end of 2025.

Reflecting on the airline’s successful expansion in 2015, Singh expressed confidence in replicating that success in the current robust market environment. "The aviation market is thriving right now. Growth and yields are strong, and factors like low oil prices are favorable. SpiceJet has successfully navigated similar expansions in the past," he noted.

Beyond fleet expansion, the raised funds will address crucial financial obligations, including statutory payments, employee dues, and other settlements.

Singh emphasized the significance of this capital raise in fostering network growth, fleet expansion, and significantly improving the company’s balance sheet.

Despite these positive developments, SpiceJet shares were trading down by 7.18% at Rs 61.30 apiece on the BSE on Wednesday.

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