10 new aircraft to join SpiceJet fleet by November-end amid growth push, BA

SpiceJet is set to strengthen its operations with the induction of ten new aircraft by the end of November 2024, signaling a major boost to the airline’s fleet and future growth plans. Of the ten aircraft, seven will be leased, while three previously grounded SpiceJet planes will be returned to service, marking a significant fleet expansion during the busy travel season.

The airline has already signed agreements for the leased planes, with the induction of all seven expected to be completed by November 15. Two of these leased aircraft have already arrived in India and are scheduled for immediate induction on October 10. Meanwhile, the phased return of the three grounded planes will be completed by the end of November.

This fleet expansion comes on the heels of SpiceJet’s successful Qualified Institutional Placement (QIP), which raised INR 3,000 crore. The fundraising saw substantial interest from global investors, including financial heavyweights like Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd. Additionally, the airline is set to receive INR 736 crore from a previous funding round, further bolstering its financial stability and positioning the airline for future growth.

The infusion of capital will be used to unground SpiceJet’s existing fleet, acquire new aircraft, invest in technology, and expand into new markets. SpiceJet is keen to enhance its operational efficiency and reputation for reliability while expanding its route network and providing passengers with improved connectivity.

Ajay Singh, Chairman and Managing Director, SpiceJet, expressed confidence in the airline’s future, stating, “This expansion is vital as we address the growing demand for air travel while strengthening our operational capabilities. The capital raised allows us to deliver better services, expand our route network, and continue offering seamless, reliable, and affordable travel options to our passengers.”

In a separate development, SpiceJet recently resolved a financial dispute with Engine Lease Finance Corporation (ELFC). ELFC had initially claimed USD 16.7 million from SpiceJet; however, an undisclosed settlement, which was lower than the original claim, has been reached. This resolution marks another important step toward stabilizing SpiceJet’s financial health as the airline works to restore and strengthen its position in the aviation market.