SpiceJet Chief Ajay Singh Says Carrier To Raise $250 Million In Next Few Months

He further informed that recently the airline raised $150 million and is planning to raise $250 million in the next couple of months in hopes of ‘a bright enough future’

Regarding the taxation on the domestic aviation industry, Singh said that governments can’t be imposing taxes on the sector labelling it a product meant for the rich and expect reduced airfares for the common public as well

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SpiceJet CEO Ajay Singh informed on Wednesday that the carrier will raise nearly $250 million in the coming months as the budget airline plans to expand its operations. The chief announced that the airline is on its way to coming back.

“The airline is tackling multiple headwinds, including lessor and debt woes. The carrier has faced significant black swan events. It is difficult to kill SpiceJet....and we are trying to fix the problems,” Singh commented, reported PTI.

The airline head assured that the balance sheet of the carrier will be cleaned up in the next two quarters. He further informed that recently the airline raised $150 million and is planning to raise $250 million in the next couple of months in hopes of ‘a bright enough future’. The founder was speaking at the CAPA India Aviation Summit in New Delhi.

SpiceJet plans to raise USD 250 million in next couple of months: Airline Chief Ajay Singh

— Press Trust of India (@PTI_News) June 5, 2024

“Currently, the carrier has wet leased some aircraft as many of its planes are grounded due to various reasons. We will grow our own fleet,” Singh said. He added that it remained crucial for the country to develop aviation hubs and ‘take every possible step in this regard’.

Regarding the taxation on the domestic aviation industry, Singh said that governments can’t be imposing taxes on the sector labelling it a product meant for the rich and expect reduced airfares for the common public as well. 

For the fiscal year 2023-24, CAPA India said on Wednesday that it projects losses around $300-400 million. The aviation consultancy pointed out that for the current 2024-25 fiscal year, the aviation sector is estimated to clock a loss of $400 million to $600 million. These figures stand inspite the surge in passenger demand, as increased costs are expected to overshadow any revenue gains, the consultancy noted.