SpiceJet seeks to infuse Rs 300 cr for fleet expansion; appoints Ajay, Shiwani as directors

Low-cost carrier SpiceJet Ltd, which came close to collapsing in December after running out of cash to pay its creditors, is looking to raise an additional Rs 300 crore ($47 million) and increase its fleet size to 45-50 aircraft by the end of fiscal 2015, the company said on Thursday. [caption id=“attachment_2067801” align=“alignleft” width=“380”]  SpiceJet. AFP[/caption] The decision to raise an additional Rs 300 crore was taken by the airline’s board that met in Chennai today, the company said. “The Board also took on record mobilization of additional funding of Rs 300 crore through various sources,” SpiceJet said in statement. In March, courts had ordered DGCA to deregister 11 of SpiceJet’s Boeing planes following disputes with three lessors. The company’s website says the carrier currently has 15 Bombardier and 19 Boeing aircraft in its fleet. The airline’s Board of Directors has also appointed new majority shareholder Ajay Singh and his wife Shiwani Singh as directors and Harsha Vardhana Singh as independent director. Ajay Singh will be the chairman and managing director of the company, it said but will not draw any remuneration for the executive functions to be performed by him. Ajay Singh, a co-founder, rescued SpiceJet in December with a $240 million bailout he says has put the airline on the road to recovery. He had exited the airline in 2010, took back its control after acquiring the entire 58.46 percent stake of Kalanithi Maran and Kal Airways Pvt. Ltd in February as part of a revival plan. As part of the plan, approved by the civil aviation ministry, Ajay Singh has committed an investment of Rs 1,500 crore in the carrier, of which he has already infused Rs 500 crore in February immediately after taking over its ownership. SpiceJet was forced to ground its fleet and cancel hundreds of flights before the rescue deal emerged. On 19 May, celebrating ten years of operations, budget carrier SpiceJet had announced that it would be offering tickets for as low as Rs 1, 010 inclusive of taxes. The three-day special sale would conclude midnight tonight and tickets at the discounted rate will be available for flights from 1 July 2015 to 15 October 2015. The offer is available for all domestic flights on SpiceJet’s direct, via and connecting flights network. International flights are not included in this offer. SpiceJet, which flew its first commercial flight in 2005 completes its first decade of flying on 23 May, 2015. PTI & Reuters