SpiceJet is significantly restructuring its balance sheet, says chief Ajay Singh

SpiceJet chief Ajay Singh said on Monday the airline is significantly restructuring its balance sheet and will aggressively push for fleet expansion.

He further assured that the airline will also have a significant number of dedicated cargo aircraft and that the cargo business has helped the airline pay off its liabilities.

Last month, the airline announced that Carlyle Aviation Partners would acquire a 7.5 per cent stake in the airline by converting outstanding dues as well as snap up shareholding in the cargo business.

Besides, it is set to tap the Qualified Institutional Buyer (QIB) route to raise up to Rs 2,500 crore.

Amid the budget carrier's multiple headwinds, he also said that a measure of desperation is always good for an organisation. "We will emerge stronger," said Singh.

"It is in our (SpiceJet) DNA. We just refuse to die," Singh said at a session at the CAPA India aviation summit in New Delhi.

He stressed on the fact that there will also be an aggressive push for fleet expansion,.

According to him, the grounding of Boeing 737 Max planes was a bigger disaster than the COVID-19 pandemic.

SpiceJet has been betting on more efficient Boeing 737 Max aircraft for its expansion.

"As we grow again, you will find a lower cost base," he said.

The cash-strapped carrier has been facing multiple headwinds, though it reported a multi-fold rise in its net profit to Rs 107 crore in the three months ended December 2022, helped by better performance in the passenger and cargo businesses.

SpiceJet shares have corrected around 44 per cent in the last one year as compared to a flat BSE Sensex. In year-to-date, the counter is down over 55 per cent against a more than six per cent fall in the benchmark index.

On Monday, SpiceJet stock was trading near its 52-week low at Rs 32.8 per share, down 2 per cent from Friday’s closing price of Rs 33.4 per share. The scrip has a 52-week high-low range of Rs 62.2–32.