No-frills airline SpiceJet on Thursday said its promoters will infuse Rs 300 crore into the airline as part of recapitalisation plans and expand fleet size to 45-50 aircraft by the end of the current financial year.
The new majority shareholder Ajay Singh who took over from media baron Kalanithi Maran has already infused Rs 550 crore into the airline.
In a statement, SpiceJet said its board has appointed Singh and his wife Shiwani Singh as directors. Singh will be the chairman and managing director of the company but will not draw any remuneration for the executive functions performed by him. The airline’s board also approved the appointment of Harsha Vardhana Singh as an independent director.
Harsha Vardhana Singh has served as deputy director general of the World Trade Organisation (WTO), and also as economic adviser and secretary to the Telecom Regulatory Authority of India (Trai).
The airline’s board also approved a plan to increase fleet size to 45-50 aircraft by the end of March 2016. SpiceJet currently has an operational fleet of 20 Boeing 737 s and 14 Bombardier Q400s. The airline plans to add seven Boeing 737s by October 2015 taking total available Boeing aircraft to 27. Of this these leased planes would be returned to lessors. The airline will add another 7-12 Boeing 737s to its fleet by the end of this financial year.
Ajay Singh came on board when the airline was briefly forced to shut operations. Oil marketing companies had refused to let the airline refuel on credit holding up flights. SpiceJet had delayed salary payments to employees and was forced to return planes on non-payment of lease rentals.