SpiceJet will acquire new aircraft, invest in new technologies and expand in new markets, the airline’s chairman Ajay Singh said on completion of ₹3,000 crore share sale.

In addition to the ₹3000 crore raised through a qualified institutional placement, SpiceJet will also receive an ₹736 crore that was committed in a previous funding round.

“SpiceJet aims to restore its reputation for efficiency and reliability, ensuring passengers have access to improved connectivity and a wider range of travel options,” Singh said in a statement on Monday.

While the statement did not give out exact details, Singh told another newspaper that the airline will scale up to 100 aircraft in two years. Currently the airline is operating around 20 planes.

The fund raise has come at a critical time for the airline which has been struggling to pay its employees, lessors and vendors. SpiceJet’s domestic market share slipped to 2.3 per cent in August from over 3 per cent a month earlier and had barely 30 per cent of flights take off or leave on time.

The airline has been unable to induct Boeing 737 Max aircraft (in addition to 13 that it has in service) and has been relying on short term leases to sustain operations.

Analysts are skeptical about SpiceJet’s growth plans.

“Even if the company shows some intent to add aircraft, the biggest problem is the non-availability of aircraft, especially Boeing which is facing significant problems from supply-chain issues but also due to the delays in getting FAA approvals. Meanwhile, Boeing has slowed down its aircraft manufacturing until its operations stabilise,” HSBC Global Research remarked in an investor note on September 4.

Singh however is confident that the airline will sail through the crisis.

“The strong response from investors and institutions is a testament to their faith in SpiceJet’s potential to rapidly scale and become a formidable player in India’s burgeoning aviation market. This fundraise marks a pivotal moment for SpiceJet as we look to scale new heights in the aviation industry,” he said.