GURGAON- SpiceJet Airline (SG) announced on Thursday (November 14, 2024) that it has fully resolved a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC), finalizing the settlement with a reduced payment of $22.5 million (Rs 189 crore).
This settlement saved the low-cost airline $68.3 million (Rs 574 crore).
SpiceJet Q400 Aircraft Settlement
As a result of the agreement, SpiceJet now fully owns 13 Q400 aircraft previously financed by EDC.
The airline stated that this ownership transfer will significantly cut operational costs, improve fleet management, and strengthen financial stability by removing monthly rental obligations.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed satisfaction with the outcome, saying,
We are very pleased to have paid the settlement amount in full and closed this agreement with EDC. This resolution allows us to move forward with a strengthened balance sheet and focus on getting our Q400 aircraft back into service as quickly as possible. We are excited to expand our regional operations and enhance connectivity across key routes, including those under the UDAN scheme, with our revitalized fleet.”
Ajay Singh, Chairman and Managing Director of SpiceJet
SpiceJet’s settlement with Export Development Canada aligns with its ongoing financial restructuring. In September 2024 the airline raised Rs 3,000 crore through an oversubscribed Qualified Institutional Placement (QIP), drawing 87 domestic and international investors.
Since September 26, 2024, SpiceJet has cleared over Rs 600 crore in outstanding dues, including salaries, Goods and Services Tax (GST) liabilities, Provident Fund (PF) contributions, and payments to aircraft lessors.
By October 29, 2024, the airline also settled Rs 310 crore in Tax Deducted at Source (TDS) dues, including Rs 220 crore owed to employees for the period between April 2020 and August 2023.
Large Expansion Plans
For the winter schedule starting October 27, 2024, SpiceJet launched 32 new flights, expanding both domestic and international routes. This includes 30 domestic flights and a new daily non-stop service connecting Delhi (DEL) with Phuket (HKT). SpiceJet aims to further bolster operations by adding 10 new aircraft by November 2024.
Led by Ajay Singh, SpiceJet also plans to launch seaplane services in 2025. The airline held a demonstration flight on November 10, 2024, from Prakasam Barrage in Vijayawada to Srisailam Dam in Andhra Pradesh, showcasing its commitment to regional connectivity.
SpiceJet has been conducting seaplane trials across multiple locations, with engineering support from De Havilland.
SpiceJet holds operational rights for seaplane services on 20 routes, including Lakshadweep, Hyderabad, Guwahati, and Shillong. The airline intends to expand connectivity on these routes as soon as the infrastructure is in place.
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