SpiceJet plans to raise $75 mn

New Delhi: Delhi-based SpiceJet plans to raise up to $75 million from the market to fund its fleet and route expansion programme. The company will invite proposals from aircraft manufacturers by March before formally placing orders for jetliners.
The low-cost airline expects to register profit for the full financial year during 2009-10, first time since it started commercial operations.
“We are looking at opportunity to raise capital from the market. The number would be in the neighbourhood of $50-75 million,” SpiceJet CEO Sanjay Aggarwal told ET. He said the airline would place orders for new aircraft for network expansion but added that the company was aiming at a ‘measured and profitable’ growth.
The company is yet to decide the modalities of raising the funds. The airline has sought government permission to fly overseas — Bangladesh, Nepal, Maldives and Sri Lanka, and hence needs more aircraft. SpiceJet would get the last plane of its earlier order in 2012. The airline, at present, has a fleet of 19 Boeing 737 jets. It has a market share of 12.4% in the domestic market.
19/01/10 Nirbhay Kumar/Economic Times

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Categories: spicejet Jan 2010