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SpiceJet gets Rs 300 crore, to expand fleet to 50

business Updated: May 21, 2015 23:09 IST
HT Correspondent
Budget carrier SpiceJet

Gurgaon-based budget carrier SpiceJet has raised Rs 300 crore and will aggressively ramp up its fleet, by adding 1-2 Boeing 737s every month to increase its fleet size to 50 by March 2016.

At present, the no-frills carrier has a fleet of 35 planes - 20 Boeing 737s and 15 Bombardier Q400s.

"We will get seven B737s before the start of the festive season in October," an airline official said.

SpiceJet has placed an order for 42 Boeing 737 Max planes, which will start arriving from 2017. The airline hasn't ruled out another order for 737s, and has also decided to retain its Q400 fleet.

The airline, which was staring at a shutdown not long ago, has completely turned around and stabilised under its new promoter Ajay Singh, who bought out Kalanithi Maran's stake in January. Singh has already infused more than Rs500 crore since taking charge of the airline and has cleared all its pending statutory dues.

"In less than six months since Singh took charge of the airline, SpiceJet is a completely changed product," aviation expert Subhash Goyal said.

Singh has been designated as MD and chairman, SpiceJet said following a board meeting on Thursday. He will not draw any remuneration for the executive functions to be performed by him, the company said in a filling to the Bombay Stock Exchange.

Singh and his wife Shiwani have been appointed directors on SpiceJet's board, while Harsha Vardhana Singh, an adjunct professor at the Columbia University, has been appointed as an independent director.

HT first reported on March 4, 2015 that SpiceJet had sought government approval for appointing Shiwani and Harsha Vardhana on the airline's board.

"The Rs 300 crore has been raised through a mixture of low-cost debt and trade financing," an official said.

SpiceJet will announce its fourth-quarter results on May 28.