News
SpiceJet and Export Development Canada settle leasing dispute
March 27th 2024
SpiceJet is acquiring 100% ownership of 13 Q400s as part of a settlement with Export Development Canada (EDC) over 7.6 billion rupee (US$91 million) in outstanding liabilities due to export credit agency. Read More » The turboprops were financed by the EDC. In a regulatory filing, SpiceJet said the resolution with EDC represented the “biggest breakthrough” to date in its financial restructuring efforts. SpiceJet will pay a “comprehensive settlement amount” of US$91 million to resolve outstanding liabilities. “We are pleased to have reached this settlement agreement with EDC. We thank its leadership and management team for their cooperation, understanding and progressive approach throughout the process,” SpiceJet chair and CEO, Ajay Singh, said. “This significant milestone will allow us to strengthen our balance sheet and position the airline for long-term success.” SpiceJet said 12 of the Q400 turboprops are grounded but when they are returned to service following refurbishment, they will be used to expand of flight frequencies on regional routes.
