27 March 2024 – A settlement deal between SpiceJet and Export Development Canada (EDC) will enable the airline to resolve significant debt, resulting in a thorough revitalization of its financial sheet. In accordance with SpiceJet’s books of accounts, the low-cost carrier would satisfy outstanding obligations of about $91 million (Rs 755 crore) by paying a complete settlement payment. SpiceJet stated in a statement on Tuesday that “this settlement marks the biggest breakthrough in SpiceJet’s financial restructuring efforts to date.”
As per the conditions of the deal, SpiceJet would enhance its operational capabilities and fleet management by fully owning 13 Q400 aircraft that EDC funded. According to SpiceJet, this crucial agreement represents a critical turning point in the company’s quest for financial stability and exemplifies its dedication to sound financial management and sustained success.
According to SpiceJet’s books of accounts, the settlement includes a complete settlement sum that SpiceJet will pay to satisfy outstanding obligations totaling about $91 million. SpiceJet said in a statement that the settlement “lays the groundwork for a fortified balance sheet and substantial savings for the airline, in addition to alleviating a substantial financial burden.”
Conclusion
“We are happy to have reached this settlement agreement with EDC, and we thank their leadership and management team for their cooperation, understanding, and progressive approach throughout the process,” said Ajay Singh, chair and managing director of SpiceJet.
