SpiceJet one of the popular domestic passenger carriers of India is looking to bolster its fleet with the addition of 10 new aircraft by the end of November 2024. The airlines had already secured an agreement to acquire seven of these aircraft on lease. They will be inducted into the fleet by November 15. While the rest three will be the previously grounded flights reintroduced into service. The announcement pushed the prices of SpiceJet shares to its day high of Rs.63.

“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,”  said Ajay Singh, Chairman and Managing Director of SpiceJet.

SpiceJet plans to induct the aircraft into its fleet in a graded manner. Two of the leased aircraft are already in India and are scheduled for immediate induction by October 10, with others to follow in a phased manner.

The expansion plan comes in the wake of the QIP (Qualified Institutional Placement) of SpiceJet. QIP is a procedure for companies to raise money by selling shares or other securities to qualified institutional buyers. The QIP saw a good response generating Rs.3000 crore from the investors. It attracted interest from institutions such as Goldman Sachs, Morgan Stanley, Tata Mutual Fund and Discovery Global Opportunity. In addition to that it is also going to receive additional Rs. 736 crores from a previous funding round. With the raised fund SpiceJet announced the settlement of the longstanding dues of the employee PF for the past 10 months and other financial obligations.

Earlier on September 24, SpiceJet announced the dispute resolution with Engine Lease Finance Corporation lower than the claim of Rs. 140 Crore. With the influx of money, SpiceJet aims to improve its technical and operational capacities.