SpiceJet to purchase new planes this fiscal

New Delhi: Budget carrier SpiceJet plans to order new aircraft for its fleet during this fiscal and chairman Ajay Singh on Monday underlined the importance of ensuring that aircraft were purchased in “an optimal manner”.

“These orders will stay with SpiceJet for 10-15 years and we must put our best foot forward and make sure we buy these planes in an optimal manner,” Singh told reporters after the company’s annual general meeting here.

“We hope that we can do it in this financial year. It is important to get it right. It is not important whether you do it in one or two months. Let’s get it right,” he said.

Explaining that the response to RFP (Request for Proposal) for new planes is being evaluated, Ajay Singh said: “We will take the best decision in the interest of the company.”

“We need to find the cheapest way of financing SpiceJet. This time, I don’t think equity dilution is the best way to do it. We will look at other options,” he added.

SpiceJet currently has 41 aircraft in its fleet, including 25 Boeing 737s, 14 Bombardier Q400s and two leased Airbus 320s.

The company posted a net profit for the third consecutive quarter last month at Rs.23.77 crore on the back of a steep fall in fuel costs and other expenses.

Also in November, the Competition Commission of India imposed penalties on SpiceJet, alongwith on Jet Airways and InterGlobe Aviation, which is the mother company of low-cost carrier IndiGo, for indulging in anti-competitive practices.

The fair business practices regulator imposed penalties totalling Rs.258 crore on three airlines which were found to have acted in a concerted manner to fix and revise fuel surcharge (FSC) prices for transporting cargo.