SPICEJET TO PURCHASE NEW AIRCRAFT WITH CASH

Neil Mills, chief executive of Indian budget carrier SpiceJet, has confirmed that the airline does not need to raise capital to fund its order of 30 Nextgen turboprop aircraft from Bombardier for about $915 million. The initial order was for 15 planes. The company will fund the purchase through cash in hand and credit. Mills stated further that he expects the airline to grow “well beyond” the industry average of 14-16% over the next 12-18 months, and load factor to exceed 80% in FY2011. SpiceJet will add 13 new aircraft to its current fleet of 25 planes in 2011.