SpiceJet enters settlement agreement with NAC; stock rises ~4%

21 Jun 2023 , 01:35 PM

SpiceJet’s counter edged up on Wednesday after the airline operator agreed to a settlement with Nordic Aviation Capital, a lessor for Q400 aircraft. The counter jumped as much as 7% to an intraday high of Rs 29.40 on NSE.

At around 1.19 PM, SpiceJet was trading 4.40% higher at Rs 28.70, against the previous close of Rs 27.49.

The agreement involves the settlement of all previous dues for the Q400s planes leased by NAC to SpiceJet. As of now, SpiceJet has five Q400 aircraft on lease from NAC.

Following this agreement, SpiceJet will reinforce three additional Q400 aircraft from NAC into its fleet, which was previously repossessed by the lessor.

SpiceJet has been having issues with its lessors, with up to 25 of its 76 planes grounded as of May of this year. The announcement comes as the airline faces an insolvency petition before the National Company Law Tribunal (NCLT).

The carrier had previously stated that it hoped to reactivate four of the 25 grounded aircraft by mid-June. According to the plan, two Boeing 737s and two Bombardier Q400s will be brought back into service. In addition, the airline intends to make more planes operational in the coming weeks.

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