Shares of SpiceJet
soared over 4 percent intraday on Friday as investors placed positive bets on the airline’s fleet expansion plans.
The low-cost carrier, on January 13, announced a mammoth deal worth Rs 1,50,000 crore to purchase 205 aircraft from the US-based aircraft maker Boeing. The move is a part of the airline’s expansion plans to domestic and international destinations, chairman and managing director, Ajay Singh, said in a statement to the exchanges.
The order was upgraded to additional 100 aircraft and purchase rights of over 50 planes of 737-8 MAX models and wide-body aircraft, the exchange notification added.
As per earlier media reports, the carrier had plans to purchase 90-100 planes from the aircraft maker at a total value of around Rs 55,000 crore.
Currently, SpiceJet has a fleet size of 47 aircraft. The company, under the leadership of previous owners, the Marans, had purchased 42 planes from Boeing.
SpiceJet posted strong numbers in Q2 with profit soaring to its highest ever levels at Rs 59 crore. The budget carrier has seen a turn around in its business ever since Singh came back to spearhead the recovery in 2015.
The company’s shareholders in December 2016 approved an annual remuneration of Rs 15 crore to Singh after the airline posted profits for seven straight quarters. He had reportedly declined to take a salary till the airline had turned profitable.
Just before his return, the airline had run into turbulent weather as its financial situation had been hit, with operations even being grounded for a day in 2014 due to lack of payment to oil companies.
In the past 15 days, the stock has witnessed a rise of nearly 16 percent. At 13:37 hrs, the stock was at Rs 65.9, up 3.1 percent on the BSE.