4-Mar-2010 10:52 AM

SpiceJet to raise USD50-75 million; add nine aircraft by 2012; expects to break even this quarter

SpiceJet announced plans to raise USD50-75 million by issuing preferential shares by Sep-2010 (Economic Times, 04-Mar-2010). The Delhi-based LCC has appointed Edelweiss, along with IDFC-SSKI Securities, to find a suitable investor, with the carrier hoping to finalise its fund-raising process in the next three to six months (PTI, 03-Mar-2010). The airline has already initiated talks with various investors, including private equity sources, which will be used to fund the carrier's fleet and international network expansion plans (the carrier plans to commence services to Sri Lanka, Nepal and Maldives). The carrier plans to induct nine additional aircraft to its 19-aircraft fleet (B737-800s and B737-900ERs) by 2012 (PTI/IANS, 03-Mar-2010). Meanwhile, SpiceJet CEO, Sanjay Aggarwal, stated the carrier would likely break-even by end-Mar-2010. Mr Aggarwal added that it is currently "studying" whether to increase its fares, but commented that a 10% increase would be "reasonable" in the present circumstances.