SpiceJet shares in action amid DGCA data, CEO Ajay Singh's bid for GoFirst

SpiceJet shares surged 13 per cent on Friday i.e. February 16 as Directorate General of Civil Aviation (DGCA) data showed that the low-cost carrier managed to hold on to its market share in January.

The counter opened at Rs 64.25 and surged as much as 13 per cent to hit an intraday high of Rs 71.9. The scrip had closed at Rs 63.63 in the last trading session. 

The surge in the stock price comes as the Directorate General of Civil Aviation (DGCA) data showed that SpiceJet managed to hold on to its market share at 5.6 per cent in January.

Meanwhile, Ajay Singh, Chairman, and Managing Director of SpiceJet, and Busy Bee Airways Private Limited, have jointly submitted a bid for GoFirst. The bid, submitted on Friday (February 16, 2024), marks a significant strategic move that has the potential to reshape the landscape of the Indian aviation sector and position SpiceJet for substantial growth in the industry.

Earlier, SpiceJet announced that it will lay off at least 1,000 employees as part of its ways and means to save costs and aiming to save about Rs 100 crore on an annual basis.

"As part of our turnaround and cost-cutting strategy, following the recent fund infusion, SpiceJet has initiated several measures, including manpower rationalization, aimed at achieving profitable growth and positioning ourselves to capitalize on the opportunities in the Indian aviation industry," a spokesperson said.

Through this initiative alone, the spokesperson said they anticipate an annual saving of up to Rs 100 crore.

The airline, which was launched in 2005, currently has around 9,000 employees and 30 planes,10 of which are wet-leased. In the pre-pandemic year 2019, the airline had a fleet of 118 planes and more than 15,000 employees.

About a fortnight ago, promoter Ajay Singh-led airline SpiceJet completed raising the first tranche of capital infusion worth Rs 744 crore through the allotment of securities on a preferential basis. 

With agency Inputs