Business News
2 min read | Updated on December 16, 2024, 11:42 IST
SUMMARY
With a ₹3,000 crore QIP, Spicejet chairman said the airline has resolved 70% of claims with lessors and vendors while planning to expand its fleet to 100 aircraft by FY27.
With a ₹3,000 crore QIP in hand, SpiceJet outlines a roadmap for revival, including fleet expansion and operational upgrades.
"For the remaining disputes, we are actively engaging with stakeholders, some of whom have complex internal processes requiring board or committee approvals," he was quoted as saying.
The airline reportedly plans to operate 35 aircraft by the end of the current fiscal year and increase this to 70 by FY26 and 100 by FY27.
"By the end of this financial year (March), we aim to have a fleet of 35 operational aircraft. We hope to have 70 aircraft by the end of FY26 and 100 by the end of FY27, when we expect to be cash-flow positive, which is a critical milestone for our turnaround," the SpiceJet chairman said.
When asked about specific measures the government should adopt to avoid a duopoly, Singh called for the inclusion of aviation turbine fuel (ATF) under the GST framework to address high taxes that burden the sector.
"The biggest reform required is bringing the aviation turbine fuel (ATF) under the GST framework. Airlines pay high VAT on ATF but cannot claim input credit. This anomaly doesn’t exist elsewhere in the world," Moneycontrol quoted Ajay Singh as saying.
"While the central government and the Ministry of Civil Aviation understand the issue, achieving consensus in the GST Council has been a challenge, as some states resist including oil products under GST."
He also stressed the need to expand the UDAN scheme and upgrade major airports to establish India as a global aviation hub.
About The Author
Next Story