SpiceJet Plans Fleet Expansion To 100 Aircraft From 25 By 2026, Says Chairman Ajay Singh

SpiceJet plans to expand its fleet from 25 to 100 aircraft by the end of 2026, according to Chairman and Managing Director Ajay Singh.

"The key focus of the airline’s qualified institutional placement proceeds is fleet expansion and balance sheet cleanup," Singh told NDTV Profit in an exclusive interview.

"From flying 25 aircraft now, our primary objective is to go back to being a 100-aircraft airline within the next two years. We were over a 100-aircraft airline in 2019, and that remains our goal," Singh said.

In addition to expanding its fleet, SpiceJet aims to clean up its balance sheet by settling outstanding dues, from grounding of the Boeing 737 MAX in 2019 and the disruption caused by the Covid-19 pandemic. "The idea is to restructure our existing liabilities, settle with all partners, and have the strength to grow back to a 100-aircraft fleet in a booming market," Singh shared.

SpiceJet raised Rs 3,000 crore last week through a QIP to bolster its balance sheet and tackle ongoing financial challenges.

Singh revealed that around Rs 1,400 crore will be used to clear dues, Rs 800 crore is allocated towards revival of grounded aircraft and around Rs 800 crore is reserve capital. "The 30 grounded aircraft will return to service soon as part of its expansion strategy."

SpiceJet has also allocated funds to lease additional aircraft, as the company will need to pay advance lease rentals to the secondary market for fleet expansion. "The plan is to get up to 40 aircraft by the end of this financial year," said Singh.

Singh highlighted that all salary dues have been cleared, and furloughed crew members are being reinstated. "We will get back the 150 crew members we had sent on furlough," he said.

The plan to 2026 is fully funded. "No more fundraising is required right now, we are on our way," Singh said.

He noted that while the airline will consider all revival options, the preference is to stick with its existing partners. "We took fewer deliveries from Boeing to keep our revival plan strong."

Market share has not been a key focus for the airline, Singh said, as it naturally increases with fleet size. He also emphasised that a healthy aviation industry requires multiple players. "A duopoly is not good for the industry. It's important that airlines in India are profitable, and we need to bring down the cost of aviation for a healthy industry," he said.

One of the major costs facing SpiceJet is the fixed cost of its grounded fleet, which will reduce once the aircraft are operational again. "We have made commitments to the investors and will fulfill those," Singh said.