26 March 2024 – SpiceJet, India’s budget airline, has taken a major step towards financial stability by settling a long-standing debt with Export Development Canada (EDC). This agreement marks a significant milestone in SpiceJet’s restructuring efforts.
The settlement involves SpiceJet paying roughly $91 million (Rs 755 crore) to clear its dues with EDC. However, the deal goes beyond just debt resolution. As part of the agreement, SpiceJet will acquire full ownership of 13 EDC-financed Q400 aircraft. This will not only bolster the airline’s operational capacity and fleet management but also generate long-term cost savings by eliminating the need for monthly aircraft rentals.
SpiceJet views this settlement as a critical step towards achieving financial stability and ensuring its long-term success. Chairman Ajay Singh expressed his appreciation for EDC’s cooperation, highlighting the agreement’s positive impact on SpiceJet’s financial health. The positive sentiment was echoed by investors, with SpiceJet’s share price on the NSE experiencing a significant jump of 5.53%.
The settlement with EDC signifies a turning point for SpiceJet. By resolving this debt and acquiring ownership of the Q400 aircraft, the airline is well-positioned for a stronger financial future and improved operational efficiency.
