SpiceJet Settles $90.8 Million Dispute, Strengthens Financial Position and Expands Fleet

On November 14, 2024, SpiceJet announced it had fully resolved a longstanding $90.8 million (₹763 crore) dispute with Export Development Canada (EDC). 

The airline settled the matter by paying a total of $22.5 million, achieving a substantial saving of $68.3 million (₹574 crore). This settlement marks a significant achievement for SpiceJet, removing a large liability from its balance sheet, strengthening its financial position, and positioning the airline for future growth and improved operations.

Acquisition of 13 Q400 Aircraft Reduces Costs

As part of this agreement, SpiceJet has acquired full ownership of 13 Q400 aircraft previously financed by EDC. By owning these planes outright, SpiceJet expects a significant reduction in operational costs, as it no longer needs to make monthly lease payments. This ownership transfer not only boosts the airline’s operational capabilities but also supports stronger fleet management and long-term financial stability.

Expanding Regional Services with Q400 Aircraft

The 13 Q400 aircraft will help SpiceJet grow its regional and UDAN routes, including several new services launched since October 27, 2024. SpiceJet has added routes such as Delhi-Amritsar, Guwahati-Patna, Kolkata-Patna, Delhi-Patna, and Delhi-Darbhanga. Recently, flights were also added on routes connecting Shivamogga with Chennai and Hyderabad, as well as Chennai with Kochi. SpiceJet plans to introduce 18 more flights in phases as more Q400s return to active service.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are very pleased to have paid the settlement amount in full and closed this agreement with EDC. 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.”

About SpiceJet

SpiceJet is one of India’s most popular airlines, known for making air travel affordable for more Indians than ever before. It is IATA-IOSA certified and operates a fleet that includes Boeing 737s, Q400s, and freighters. As India’s largest regional carrier, it runs many flights under the UDAN scheme to enhance regional connectivity. The airline also offers SpiceMax, India’s most spacious economy seating across much of its fleet.

On November 14, 2024, SpiceJet share price opened at ₹54.00, touching the day’s high of ₹55.87, reflecting a rise of 2.69% as of 11:11 AM on NSE.

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