- SUMMARY
- After a struggling period, SpiceJet is looking to bounce again.
- The airline is looking to raise more investment.
- Singh said that Government cant expect airlines to reduce fares, while taxing aviation like a rich-man product.
SpiceJet is a cat with unlimited lives. After staying afloat throughout the pandemic and facing insolvency pleas by numerous lessors, the airline is looking to clean its balance sheet and eyeing profitability.
The airline is eyeing to raise more investment, which will be used to increase the number of aircraft in its fleet. This statement comes just days after the Delhi High Court warned the airline to stop using 2 aircraft and send them back to the lessor.
SpiceJet Raising More Money
At the CAPA India Aviation Summit, SpiceJet Chief Managing Director, Ajay Singh said that the airline is looking to raise more money. Within the next three months, it will be raising $250 million (Rs 2,000 crore). Singh has been in discussions with various private credit funds for investment. This money will be used to lease more aircraft. In the next six months, the airline is looking to clean its balance sheets.
When asked about his opinion on the election results, he hoped that the new government would be less bureaucratic and would support the growth of the aviation industry.
Yesterday, the Lok Sabha election results were announced, in which the BJP-led NDA Alliance won 291 seats, while the Congress-led INDIA Alliance won 234 seats. Ajay Singh is considered a close aid to the BJP government. In 2019, he was the one behind the carving of the slogan of BJP- ‘Abki baar, Modi Sarkaar’.
Singh added that it is difficult to kill SpiceJet, as the airline is set to grow again. Since its inception, the airline’s journey has been like a roller coaster ride. It has around 200 Boeing 737 MAX on order, but it has not taken delivery of a single jet since the pandemic. As some of its planes are grounded because of the non-availability of spare parts, it is mitigating the demand by wet-leasing some aircraft from foreign carriers. For Hajj operations, it has wet-leased two Airbus A340s from Legend Airlines.
Aviation Needs Lower Taxation
During the discussion at the CAPA India forum, Ajay Singh discussed an important point. He said that the government cannot expect lower ticket prices while taxing the aviation sector as a rich man’s product. He stressed the need for aviation hubs in India.
The domestic aviation market is now very competitive. Instead of market share, airlines are striving for profitability. Yields in the Indian market are currently at the highest and this trend will continue in the next financial year.
Not just Ajay Singh, but Director General of IATA, Willie Walsh is also concerned about the higher taxes in India. In the IATA AGM 2024, he said that higher taxes will lead to airlines withdrawing their operations from the Indian market. In October 2023, the GST Intelligence Office sent tax notices to various foreign carriers, accusing them of tax evasion.
Conclusion: SpiceJet MD Ajay Singh Comments
SpiceJet MD Ajay Singh hopes that the next government is less bureaucratic. He said that the airline is all set to raise Rs 2000 crore by August, with which it will increase the number of aircraft. It is already in talks with some credit funds. Singh stressed the need for aviation hubs in India and lowering the taxes on the aviation sector.
What do you think about the comments of Ajay Singh? Discuss in the comment section.
With Inputs From MoneyControl
Featured Image Credits: SpiceJet via Facebook
Read the Latest Aviation News on Times of Aviation
Read More: Cambodia Angkor Air Has Appointed General Sales Agent in India For Cargo Operations
Website Disclaimer: Times of Aviation does not claim copyright ownership of any information or images used on this website. Usage of content falls under fair use.