SpiceJet joins race, seeks RBI nod to raise Rs 1,212 crore

The competitive war among airlines in the country is just getting bigger. This week three low-cost budget airlines have placed orders to purchase new aircraft, namely Indigo, GoaAir and AirAsia. And today, a fourth name could be added to the list.Kalanidhi Maran-owned Spice Jet has sought the central bank’s approval to raise Rs 1,212 crore million for fleet expansion, reports Mint. It’s obvious they are all feeling the heat and are looking at the international route as the next growth sector. SpiceJet, which uses 29 Boeing B737 aircraft for 192 daily flights to 23 cities, plans to add 15 Canadian-manufactured Bombardier Q400 short-haul aircraft from July to connect more cities, Mint said. [caption id=“attachment_30724” align=“alignleft” width=“380” caption=“It has sought the RBI nod to raise money from Canada’s export finance agency Export Development Canada (EDC) for financing fleet expansion. Image by GBYGB/Flickr”]  [/caption] “There is a clearance to raise $270 million from EDC, which is the equivalent of US Exim Bank. RBI approvals are likely to come soon,” an unidentified source told the newspaper. Shares of the low-cost budget airline touched an intra-day high of Rs 28.90 on the news and is now trading at Rs 28.70, up 5 percent. The carrier will do an “outright purchase” of the aircraft and funding for 15 planes has already been tied up, the newspaper quoted another unidentified source as saying. A company spokesperson could not immediately make a comment. Reuters