SpiceJet settles its dispute with Export Development Canada for $22.5 million

SpiceJet acquires full ownership of 13 Q400 planes

SpiceJet today announced that it has fully settled a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a total of $22.5 million, now paid in full by the airline. This resolution marks a significant milestone for SpiceJet, resulting in a substantial saving of $68.3 million (Rs 574 crore).

The agreement represents one of the largest settlements in SpiceJetfs history, strengthening the airlinefs fiscal position, eliminating a significant liability from its balance sheet and paving the way for sustained growth and operational efficiency.

As per the terms of the agreement, SpiceJet has acquired full ownership of 13 EDC] financed Q400 aircraft. The transfer of ownership of these 13 planes will result in a substantial reduction in operational costs, strengthening the airlinefs operational capabilities and fleet management. It also brings long]term financial benefits, relieving SpiceJet from the obligation of monthly rental payments for these aircraft and further reinforcing the airlinefs financial stability.

 

These aircraft will also enable SpiceJet to launch additional flights on regional and UDAN routes. Starting October 27, 2024, the airline has begun operating several new routes using the Q400, including Delhi]Amritsar]Delhi, Guwahati]Patna]Guwahati, Kolkata] Patna]Kolkata, Delhi]Patna]Delhi, and Delhi]Darbhanga]Delhi. Recently, SpiceJet also introduced services on the Shivamogga]Chennai, Shivamogga]Hyderabad, and Chennai-Kochi sectors with the same aircraft. SpiceJet plans to roll out another 18 flights in phases as more Q400 aircraft return to service.

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