SpiceJet raises Rs 300 crore, to increase fleet to 50 planes

Ajay Singh and wife Shiwani join board as chairman and director; Ajay Singh not to draw salary

SpiceJet raised Rs 300 crore through a mix of debt and supplier credit, its second fund infusion since January. The airline received initial funding of Rs 400 crore from company's promoter Ajay Singh.

The airline made  three appointments to its board.  Ajay Singh and his wife, Shiwani, join the board as chairman and director, respectively. Harsha Vardhana Singh, adjunct professor in Columbia University, is the third board member.  Ajay Singh will not draw remuneration for his executive role.

SpiceJet's board approved the appointment of new members and also approved the proposal to increase the fleet size to 45-50 by the end of FY16. Currently, the airline flies 20 Boeing 737s (including three aircraft leased from a Czech airline and 15 Bombardier Q400 turbo prop planes).  Earlier, the airline said it will increase the number of Boeing 737s in its fleet to 27-28 this year. The airline also  has 42 Boeing 737 Max on order and deliveries are expected from 2017.

 

SpiceJet is looking to raise Rs 900 crore through debt or equity and is in discussion with banks and private equity firms, the airline indicated earlier this week. The funds will be used to repay debt and as working capital.

The airline underwent a change in ownership in January with Ajay Singh stepping in as chairman. It received Rs 400 crore in infusion and is undergoing expansion after a difficult winter season that saw grounding of the fleet, curtailment of schedule and cancellation of flights.