SpiceJet need not raise capital for Bombardier buy

Mumbai: Indian budget carrier SpiceJet does not need to raise capital to fund its aircraft purchases from Canada's Bombardier Inc, its Chief Executive said on Friday.
SpiceJet in November agreed to buy as many as 30 Nextgen turboprop aircraft from Bombardier for about $915 million. The initial order was for 15 planes.
The company will fund the pruchase through cash in hand and credit, Neil Mills told Reuters in an interview.
Mills expects the company to grow "well beyond" the industry average of 14-16 percent over the next 12-18 months, and load factor to exceed 80 percent in FY2011.
SpiceJet will add 13 new planes to its current fleet of 25 planes in 2011, Mills said.
28/01/11 Reuters/Business Standard

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Categories: spicejet Jan 2011