‘We just refuse to die’: SpiceJet chief talks restructuring, fleet growth

India’s SpiceJet is to “significantly” restructure its balance sheet in the coming months, raise fresh equity, and embark on an “aggressive push” to grow its fleet. Airline chief Ajay Singh says the airline is also in the process of hiving off cargo unit SpiceXpress and Logistics, with the new subsidiary helping to raise capital for the embattled carrier. Singh, speaking at the CAPA India Aviation Summit 2023 in Delhi on 20 March, said the airline is focused on “cleaning up the balance sheet” in the near term. “We are trying to restructure the balance sheet in a significant way. You will see a vastly different balance sheet over the next two quarters. The process has already started,” says Singh. His comments come weeks after the airline agreed to a debt-for-equity deal with lessor Carlyle Aviation Group, which saw the airline restructure close to $100m in outstanding payments into shares and compulsory convertible debentures. SpiceJet in February announced pre-tax and net profits of just over Rs1b ($12.1m) for the quarter ended 31 December 2022, on the back of an upturn in demand and yields. The airline has seen its domestic market share dwindle in recent months. Where it was once the country’s second domestic operator, the latest traffic data shows the airline languishing in fifth position. Singh acknowledges it was “the weaker link” in the Indian aviation sector during the Covid-19 pandemic, noting that SpiceJet lacked “strong reserves” or a strong backer. Still, Singh remains optimistic of the airline’s prospects despite the headwinds: “Any measure of desperation is always good for an organisation…I’m very positive…I think there is a lot of good stuff happening at SpiceJet.” <br/>