SpiceJet shares surge 9% as airline plans to raise $250M
SpiceJet has announced plans to raise an additional $250 million by August. The details were shared by Chairman Ajay Singh today. Following this new, shares of SpiceJet soared as much as 9% to ₹54.32 amid recovery seen across all major indices after yesterday's record crash. According to Singh, the funds will be used to boost the airline's capacity through aircraft leasing. Over the next two quarters, SpiceJet also plans to 'clean up its balance sheets.'
SpiceJet's expectations from the new government
In light of the recent electoral mandate favoring the NDA bloc less than in 2019, Singh expressed optimism for the new government. He voiced his expectation that it "will not be as bureaucratic and will allow expansion of the aviation ecosystem." In January this year, the cash-strapped airline received ₹744 crore as part of the total ₹2,250 crore it plans to source through issuance of securities on preferential basis.
'Governements can't be taxing India's aviation as rich man product'
At the CAPA India's Aviation Summit, Singh emphasized the need for a balanced approach to aviation taxes in India. Governements can't be 'taxing India's aviation as a rich man product and expect lower airfares' for the common man at same time, he said. Singh urged the new Modi 3.0 government to reconsider the current tax structure to foster aviation hubs within India. He noted that airlines are now prioritizing profitability over capturing market share, signifying a more sustainable industry landscape.
