SpiceJet Airlines (SG) has successfully settled a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a significantly reduced payment of $22.5 million (Rs 189 crore). The settlement saved the budget airline $68.3 million (Rs 574 crore), SpiceJet spokesperson informed Financial Express.

SpiceJet Acquires full ownership of 13 Q400 aircraft
As part of the deal, SpiceJet now owns all 13 Q400 aircraft that were previously financed by EDC. The move is expected to reduce operational costs and improve fleet management by eliminating monthly lease payments. According to SpiceJet, the revitalized fleet will expand regional operations and improve connectivity on key routes, including those under the UDAN scheme.

Progress in financial restructuring
SpiceJet’s settlement aligns with its broader financial restructuring efforts. In September 2024, the airline raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) and has since cleared over Rs 600 crore in dues, including salaries, taxes and payments to lessors.

Ambitious expansion plans
SpiceJet’s winter schedule includes 32 new flights – 30 domestic and one international – and plans to add 10 aircraft by November 2024. Additionally, the company aims to launch seaplane services in 2025, focusing on regional connectivity on 20 operational routes, including Lakshadweep and the North East. This marks a significant milestone in SpiceJet’s recovery and growth strategy.