SpiceJet Expands Fleet with 10 New Aircraft by November
Indian low-cost carrier SpiceJet has announced plans to expand its commercial fleet with the introduction of 10 new aircraft by the end of November 2024. In a statement released on October 8, 2024, the airline revealed that seven of the aircraft have been acquired through lease agreements, while three previously withdrawn from service will be reintroduced.
The seven leased aircraft are expected to join the SpiceJet fleet by November 15, 2024, with two of them already having arrived in India. The three Boeing 737s that were inactive will return to service before the end of November. This expansion is crucial for SpiceJet as it aims to meet the increasing demand for air travel and enhance its operational capabilities.
Ajay Singh, Chairman and Managing Director of SpiceJet, emphasized the significance of this fleet expansion, stating, “This addition is crucial as we continue to meet the growing demand for air travel while strengthening our operational capabilities. With the capital raised, SpiceJet is well-positioned to offer improved services and an expanded route network.”
In September 2024, SpiceJet successfully raised Rs 3,000 crore (approximately $360 million) through its Qualified Institutional Placement (QIP), providing the airline with much-needed capital to support its growth initiatives. Additionally, the airline is set to receive another Rs 736 crore ($87.6 million) from a previous funding strategy, further bolstering its financial position.
Following the announcement of the new aircraft entering service, SpiceJet’s share price saw a positive spike on October 8, 2024, signaling investor confidence in the airline’s expansion plans.
According to ch-aviation.com, SpiceJet’s current fleet consists of 17 aircraft, including two Boeing 737-700s, nine Boeing 737-800s, five DHC-8-Q400s, and one Boeing 737-900. The planned addition of 10 new aircraft will significantly enhance the airline’s operational capacity and enable it to expand its route network.
Despite reaching a recent settlement with Engine Lease Finance Corporation (ELFC) to resolve a $16.7 million dispute, SpiceJet still faces unresolved claims from other entities, including Aircastle and Alterna Aircraft. As the airline navigates these challenges, the expansion of its fleet is a positive step toward improving service and competitiveness in the Indian aviation market.
With the introduction of these new aircraft, SpiceJet is poised to strengthen its position in the rapidly growing low-cost carrier segment, catering to the increasing demand for air travel across India and beyond. The upcoming months will be critical for SpiceJet as it implements its growth strategy and continues to adapt to the evolving dynamics of the aviation industry.
Related News : https://airguide.info/?s=SpiceJet