SpiceJet's Wings Spread: Secures Q400 Aircraft From NAC In Settlement Agreement

SpiceJet's Wings Spread: Secures Q400 Aircraft From NAC In Settlement Agreement

The sixth Q400 aircraft is currently on its way to India from Germany and is expected to arrive in Delhi shortly.

Oliviya KunjumonUpdated: Tuesday, April 02, 2024, 05:52 PM IST
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SpiceJet | File

SpiceJet Limited announced on Tuesday, via an exchange filing, that it is poised to acquire a Q400 aircraft from Nordic Aviation Capital (NAC) as part of a settlement agreement inked last year.

Under this agreement, SpiceJet acquires full ownership of six Q400s, effectively settling all past liabilities associated with the Q400s leased by NAC to the airline. Moreover, the airline already has five e Q400 aircraft which were earlier owned by NAC, said via regulatory filing.

Financial Impact and Savings

This agreement not only transfers ownership of the aircraft to SpiceJet but also brings immense long-term savings for the airline. By acquiring full ownership, SpiceJet is freed from the obligation of regular monthly rentals for these aircraft.

Timely Arrival of Sixth Q400 Aircraft

The sixth Q400 aircraft is currently on its way to India from Germany and is expected to arrive in Delhi shortly.

Recent Settlements and Savings

SpiceJet has recently announced four major settlements with key aircraft lessors. Recently, the airline announced four major settlements, resulting in substantial savings amounting to Rs 1,252 Crore.

Significant Agreement with Export Development Canada (EDC)

Earlier, SpiceJet on March 26 announced a settlement with Export Development Canada (EDC), securing full ownership of 13 EDC-financed Q400 aircraft. This agreement resolved liabilities amounting to nearly USD 91 million, leading to substantial savings of Rs 567 crore for the airline.

SpiceJet Limited shares

The shares of SpiceJet on Tuesday at 3:30 pm IST closed at Rs 62.32, up by 1.25 per cent.

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