Spicejet
Delhi-based low-cost airline SpiceJet is to raise around $250 million in the next couple of months as it works to boost its operations.
Speaking at the CAPA India Aviation Summit, Ajay Singh, Chairman and Managing Director of SpiceJet, said that the airline is tackling multiple headwinds, including lessor and debt woes. He added that the carrier has faced “significant black swan events.”
“It is difficult to kill SpiceJet….and we are trying to fix the problems,” Singh said at the CAPA Aviation Summit and asserted that the airline’s balance sheet will be cleaned over the next two quarters.
The latest round of fundraising comes even as in December last year, the airline’s board had approved the raising of fresh capital of over about $270 million through the issuance of equity shares to Financial Institutions, FIIs, HNIs, and private investors, aimed at fortifying the airline’s financial strength and accelerating its growth trajectory.
At that time, the airline said, “the proposed fund infusion will go a long way in enhancing SpiceJet’s product presence and market reach and providing a deep financial foundation. The capital raised will be instrumental in funding operational expansion initiatives, including fleet enhancement, route network expansion, and technological advancements.”
In March this year, SpiceJet and Export Development Canada signed a settlement agreement, which will allow the airline to clear major liabilities, leading to a comprehensive revitalization of its balance sheet, as the airline had said in a statement.
The statement added that under the agreement’s terms, SpiceJet will acquire full ownership of 13 EDC-financed Q400 aircraft, bolstering the airline’s operational capabilities and fleet management. This agreement marked a milestone in SpiceJet’s pursuit of financial stability.
“As part of the settlement, SpiceJet will pay a comprehensive settlement amount to resolve outstanding liabilities amounting to close to $91 million as per SpiceJet’s books of accounts. This settlement not only alleviates SpiceJet of a substantial financial burden but also lays the groundwork for a fortified balance sheet and substantial savings for the airline,” the airline said at that time.
In the same month, the airline announced the successful resolution of a $49.8 million dispute with Echelon Ireland Madison One Ltd.
Views: 0
