SpiceJet, India’s popular low-cost carrier, is set to soar to new heights with ambitious expansion plans. The airline aims to significantly increase its fleet size to over 100 aircraft by 2025, a move fueled by a recent $30 million investment secured through a Qualified Institutional Placement (QIP).
This expansion strategy, outlined by SpiceJet CEO Ajay Singh to ET Now, involves adding 75 new aircraft over the next two years. This expansion will propel SpiceJet’s current fleet size, which stands at 25-28 aircraft, to a significant 100+ by 2025. The airline is also looking to strengthen its operations by acquiring 40 to 45 aircraft from the secondary market in the coming years.
Singh expressed optimism about the potential of the current market conditions, drawing inspiration from the company’s rapid growth in 2015. He believes that this expansion will be instrumental in maximizing SpiceJet’s position in the market.
The $30 million investment will be allocated to various strategic goals, including meeting essential financial commitments. This includes covering statutory dues, employee payments, and other financial obligations.
Despite the positive outlook and ambitious expansion plans, SpiceJet’s shares experienced a dip of 7.18% on Wednesday, closing at Rs 61.30 per share on the BSE.
