In recent news, SpiceJet Chief Ajay Singh has announced that the airline is significantly restructuring its balance sheet and will aggressively push for fleet expansion. The budget carrier is also set to tap the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore.

Singh also shared that SpiceJet will have a significant number of dedicated cargo aircraft, as 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 and will also snap up shareholding in the cargo business.

Despite facing multiple headwinds, Singh remains optimistic about SpiceJet’s future. He believes that “a measure of desperation is always good for an organization… we will emerge stronger.” Singh added that this is part of SpiceJet’s DNA and the company simply refuses to die.

The grounding of Boeing 737 Max planes was a significant disaster for the airline, according to Singh. 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.

Although the cash-strapped carrier has been facing multiple challenges, 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.

In conclusion, the restructuring of SpiceJet’s balance sheet and aggressive push for fleet expansion, along with tapping the QIB route to raise capital, show the airline’s determination to bounce back and emerge stronger from the challenges it has faced. The cargo business has helped the airline pay off its liabilities, and SpiceJet is optimistic about the future with more efficient Boeing 737 Max aircraft for its expansion.