Exclusive: SpiceJet to go for another round of funding, says CMD
Ajay Singh, SpiceJet's CMD, speaks with CNBC-TV18 on the sidelines of the CAPA India Aviation Summit 2024.
Indian budget airline SpiceJet is gearing up for another round of funding and aims to secure fresh capital by August. In an exclusive interview with CNBC-TV18 on the sidelines of the CAPA India Aviation Summit 2024, Ajay Singh, SpiceJet's CMD, revealed, "The intention is to raise $200 million. The process should be completed by the end of August. We were waiting for the election process to be over to move forward aggressively on fundraising. We raised $150 million 3 months ago."
SpiceJet is currently discussing with American aerospace major Boeing to restore deliveries from its original order of 200 aircraft. The airline initially ordered 155 737 MAX aircraft with Boeing in 2017, with an additional option for 50 more aircraft. With a fleet of just around 29 aircraft, the airline has taken several mitigating measures. Singh said, "We're working to uplift the aircraft that are on the ground. We're increasing short-term capacity through wet leasing and longer-term capacity by dry leasing. Our objective is to get back to a fleet of 100 aircraft as soon as possible."
Ajay Singh also shared his expectations from the new government stating, "I am confident that the new government will ensure that the aviation sector grows rapidly and regulatory issues are addressed. The aviation sector is facing an unfair situation as the largest input (ATF) has a high incidence of tax. There is no input tax credit for this input; this needs to be addressed."
He expressed optimism that Aviation Turbine Fuel (ATF) will be brought under the Goods and Services Tax (GST) regime. "ATF under GST is a structural reform that's needed for a long time. Hopefully, the new government will address this; it has already started discussions on this."
Addressing the ongoing dispute between SpiceJet and its former promoter Maran, Singh stated, "The matter with former promoters is in the courts, SpiceJet succeeded in Delhi High Court. The High Court order is in our favour of SpiceJet, hoping these can be executed so that the issues come to an end."
SpiceJet is currently discussing with American aerospace major Boeing to restore deliveries from its original order of 200 aircraft. The airline initially ordered 155 737 MAX aircraft with Boeing in 2017, with an additional option for 50 more aircraft. With a fleet of just around 29 aircraft, the airline has taken several mitigating measures. Singh said, "We're working to uplift the aircraft that are on the ground. We're increasing short-term capacity through wet leasing and longer-term capacity by dry leasing. Our objective is to get back to a fleet of 100 aircraft as soon as possible."
Ajay Singh also shared his expectations from the new government stating, "I am confident that the new government will ensure that the aviation sector grows rapidly and regulatory issues are addressed. The aviation sector is facing an unfair situation as the largest input (ATF) has a high incidence of tax. There is no input tax credit for this input; this needs to be addressed."
He expressed optimism that Aviation Turbine Fuel (ATF) will be brought under the Goods and Services Tax (GST) regime. "ATF under GST is a structural reform that's needed for a long time. Hopefully, the new government will address this; it has already started discussions on this."
Addressing the ongoing dispute between SpiceJet and its former promoter Maran, Singh stated, "The matter with former promoters is in the courts, SpiceJet succeeded in Delhi High Court. The High Court order is in our favour of SpiceJet, hoping these can be executed so that the issues come to an end."
(Edited by : Vrushali Sawant)
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