By IANS,
New Delhi/Mumbai: Budget carrier SpiceJet Friday said it has sought permission from the Reserve Bank of India (RBI) to raise $270 million for aircraft acquisitions to expand its domestic and international operations.
“We have requested permission to raise $270 million from Export Development Canada (EDC) for aircraft acquisition and expansion of our operations,” a company spokesperson told IANS.
According to the spokesperson, the company expects an exponential demand in the coming years for which it was adding capacity through aircraft acquisitions.
Last year, the airline placed orders worth $2.7 billion with US-based aircraft major Boeing for buying 30 B737 planes whose deliveries are expected to begin by 2014.
Besides the Boeing deal, the company also placed orders worth $915 million for buying 30 Q400 Nextgen turboprop aircraft from Canada’s Bombardier to strengthen its regional networks.
“All aircraft that we have ordered are at various stages of delivery. With these aircraft, we expect to strengthen not just our regional, major domestic routes but also international sector routes.”
The company has also sought permission from the country’s aviation watchdog — Directorate General of Civil Aviation (DGCA) — to expand its networks to southeast Asia and Middle East sectors.
The company expects to add seven Boeing 737 aircraft during the year to its operational fleet of 25 aircraft, while the budget carrier plans to have a fleet of around 70 aircraft by 2013 including the Q400 Bombardier aircraft.
According to official data, the airline has a current domestic market share of around 14.2 percent reported for January-May 2011, placing it as the fourth-largest passenger carrier in the country.
The company which is promoted by Sun TV chief Kalanithi Maran, posted an annual profit of Rs.101.2 crore during 2010-11, as against, a profit of Rs.61.5 crores during the previous financial year.
The company’s scrip at the Bombay Stock Exchange (BSE) rose 19.85 percent to reach Rs.32.60 at the end of the day’s trading.