India’s Spicejet has secured deals to boost its operational fleet, signalling that the airline’s efforts to raise more funds may help it to reverse its decline and move closer to its former scale.
The key to the improvement in the airline’s outlook is the successful completion of a capital raise.
This was quickly followed by the announcement that it will add 10 more aircraft to its fleet, comprising new leases and the reactivation of some grounded aircraft.
SpiceJet’s fragile financial condition has been a major handicap for the company, forcing it to keep a large proportion of its fleet grounded, and shrinking its market share.
It has fallen further behind its larger domestic rivals as they pursue ambitious growth plans.
But while challenges remain, the fundraising and fleet additions are welcome signs of progress.