SpiceJet Airlines (SG) has successfully settled a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a significantly reduced payment of $22.5 million (Rs 189 crore). The settlement allowed the low-cost airline to save $68.3 million (Rs 574 crore), informed SpiceJet spokesperson to Financial Express.
SpiceJet Acquires Full Ownership of 13 Q400 Aircraft
As part of the agreement, SpiceJet now fully owns 13 Q400 aircraft that were previously financed by EDC. This move is expected to reduce operational costs and enhance fleet management by eliminating monthly lease payments. According to SpiceJet, the revitalised fleet will expand regional operations and enhance connectivity across key routes, including those under the UDAN scheme.
Financial Restructuring Progress
SpiceJet’s settlement aligns with its broader financial restructuring efforts. In September 2024, the airline raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) and has since cleared over Rs 600 crore in dues, including salaries, taxes, and payments to lessors.
Ambitious Expansion Plans
SpiceJet’s winter schedule includes 32 new flights—30 domestic and one international—and plans to add 10 aircraft by November 2024. Additionally, it aims to launch seaplane services in 2025, focusing on regional connectivity across 20 operational routes, including Lakshadweep and the Northeast. This marks a significant milestone in SpiceJet’s recovery and growth strategy.