SpiceJet's Shares Soars as it Secures Q400 Aircraft in Settlement Deal

2 Apr 2024 , 01:24 PM

SpiceJet’s shares surged over 2% following news of acquiring a Q400 aircraft from Nordic Aviation Capital (NAC) as part of a settlement agreement.

The agreement grants SpiceJet full ownership of six Q400s, settling past liabilities associated with the aircraft leased from NAC. The airline now owns a total of eleven Q400 aircraft, with the sixth Q400 aircraft en route to India from Germany and expected to arrive in Delhi soon.

This agreement is anticipated to result in significant long-term savings for SpiceJet, eliminating the need for regular monthly rentals for the acquired aircraft.

SpiceJet’s shares on the Bombay Stock Exchange (BSE) traded 2% higher at ₹62.15 apiece on Tuesday at the time of writing.

The timely arrival of the Q400 aircraft aligns with the upcoming summer schedule, enhancing connectivity and services for passengers during peak travel seasons.

SpiceJet recently announced settlements with major aircraft lessors, including Export Development Canada (EDC), resulting in savings of ₹1,252 Crore for the airline.

The agreement with EDC secured full ownership of 13 Q400 aircraft, resolving liabilities of nearly $91 million and yielding savings of ₹567 Crore.

Additional settlements with Cross Ocean Partners and AerCap resulted in savings of ₹685 Crore, with SpiceJet acquiring three Boeing aircraft as part of these agreements.

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