SpiceJet, one of India’s leading budget carriers, announced a significant fund infusion of INR 2250 crore during its Annual General Meeting (AGM), outlining strategic initiatives aimed at strengthening the airline and expanding its network. Ajay Singh, Managing Director of SpiceJet, provided insights into the airline’s growth trajectory and highlighted key developments.
The infusion of funds, a large part of which is earmarked for the airline’s growth, is expected to fortify SpiceJet, making it more resilient in the dynamic aviation landscape. The move is anticipated to open new market potential and opportunities for SpiceJet, enabling the revival of grounded planes and the enhancement of its operational capabilities.
Singh shared the airline’s plan to soon launch flights connecting Ayodhya with multiple cities across the country, contributing to increased air connectivity and accessibility to the historic city. Additionally, SpiceJet holds exclusive rights under the Regional Connectivity Scheme (RCS) for Lakshadweep and is set to launch flights to the picturesque archipelago in the Arabian Sea.
In its stock exchange intimation on Thursday, SpiceJet talked about issue and allotment of 31,83,00,000 equity shares of INR 10 each at a price of INR 50 per share on a preferential basis. During the AGM, the adoption of audited financial statements for the financial year ended March 31, 2023, was also confirmed. The company also approved the reappointment of key directors, including Shiwani Singh, Ajay Aggarwal, and Manoj Kumar.
In a strategic move towards cargo transportation, SpiceXpress, a subsidiary of SpiceJet, also announced a partnership with Star Air. This collaboration aims to optimise the belly space capacity for cargo transportation in Star Air’s fleet of nine aircraft, comprising five Embraer 145 jets and four Embraer 175 jets.The partnership is set to significantly enhance SpiceXpress’s domestic network, introducing cargo transportation to nine new destinations: Belagavi, Bhuj, Kalaburagi, Kishangarh, Kolhapur, Jamnagar, Jodhpur, Nagpur, and Shivamogga. This expansion aligns with SpiceXpress’s commitment to bolstering the nation’s air cargo infrastructure and SpiceJet’s mission to serve underserved regions in India.
Under the three-year agreement, extendable by mutual consent, SpiceXpress’s domestic network will expand from 39 to 48 destinations. This development is poised to strengthen the company’s Door-to-Door delivery and postal services, fostering seamless cooperation between SpiceXpress and Star Air.