Spicejet to consider capital raise amid losses, market share battle

BENGALURU (Reuters) -Indian carrier Spicejet Ltd said, on Tuesday, it will consider options to raise fresh capital by issuing securities to qualified institutional buyers amid a string of quarterly losses as competition heats up in the aviation industry.

The plan to raise capital comes as Spicejet’s cash reserves dwindle and new entrant Akasa Air jostles for a share of the market while rival Air India ramps up its revamp plans with mammoth orders for new aircraft.

Spicejet’s market share slipped to 7.3% in January from 7.7% in December, while IndiGo retained the lion’s share of 56.3%. Akasa grabbed 2.8%, while Air India’s share was steady at 9.2%, data from the country’s aviation regulator showed.