SpiceJet Resolves EDC Deal, Shares Surge

SpiceJet Resolves EDC Deal, Shares Surge/Bloomberg

VoM News Desk | March 26, 2024 | 08:05 PM IST | Breaking News | Follow on Google News

SpiceJet Resolves EDC Deal, Shares Surge

SpiceJet Resolves EDC Deal, Shares Surge

SpiceJet secures a ₹755-crore deal with Export Development Canada (EDC), marking a significant milestone in its financial restructuring efforts. The agreement clears major liabilities and revitalizes the airline’s balance sheet.

Impact on SpiceJet’s Operations

The settlement grants SpiceJet ownership of 13 Bombardier EDC-financed Q400 aircraft, eliminating the need for regular monthly rentals. It resolves outstanding liabilities of approximately $91 million, generating savings of $68.3 million or ₹567 crore.

Future Plans and Expansion

With refurbished Q400s set to return to service, SpiceJet aims to launch flights on regional and UDAN routes. Additionally, the airline prepares for the summer schedule by finalizing lease agreements for 10 aircraft to enhance capacity and ensure smooth connectivity for passengers.

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