SpiceJet Resolves Rs 763-Crore Liability, Fully Acquires 13 Aircrafts
SpiceJet has announced that it has paid off a long-standing financial dispute with Export Development Canada, settling a $90.8 million (approximately Rs 763 crore) liability for $22.5 million, saving $68.3 million (Rs 574 crore) for the airline.
This is one of the largest settlements in SpiceJet's history and strengthens its fiscal position by removing a substantial liability from its balance sheet, according to a press release.
“This resolution allows us to move forward with a strengthened balance sheet and focus on getting our Q400 aircraft back into service, as quickly as possible. We are excited to expand our regional operations and enhance connectivity across key routes, including those under the UDAN scheme, with our revitalised fleet," said Ajay Singh, chairman and managing director of SpiceJet.
As part of the agreement, SpiceJet has gained ownership of 13 Q400 aircraft, that were previously financed by EDC. The airline anticipates that owning these planes will lead to substantial reductions in operational costs by eliminating monthly rental expenses, which will further stabilise the airline’s financial footing.
