SpiceJet restructuring balance sheet: Chief

NEW DELHI: SpiceJet chief Ajay Singh on Monday said the airline is significantly restructuring its balance sheet and will aggressively push for fleet expansion.

The airline will also be having a significant number of dedicated cargo aircraft, he said, adding that the cargo business has helped the airline pay off its liabilities.

Last month, the airline announced that Carlyle Aviation Partners will acquire a 7.5 per cent stake in the airline by converting outstanding dues as well as snap up shareholding in the cargo business.

Besides, it is set to tap the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore.

Amid the budget carrier facing multiple headwinds, he also said that a measure of desperation is always good for an organisation... we will emerge stronger”.

“It is in our (SpiceJet) DNA. We just refuse to die,” Singh said at a session at CAPA India aviation summit here.

The airline is significantly restructuring the balance sheet and will be raising fresh capital. There will also be an aggressive push for fleet expansion, he asserted.

According to him, the grounding of Boeing 737 Max planes was a bigger disaster than COVID, Singh said.

SpiceJet has been betting on more efficient Boeing 737 Max aircraft for its expansion.

“As we grow again, you will find a lower cost base,” he said.

The cash-strapped carrier has been facing multiple headwinds though it reported a multi-fold rise in net profit to Rs 107 crore in the three months ended December 2022, helped by better performance in passenger and cargo businesses.