SpiceJet settles row with EDC, gets ownership of 13 planes

SpiceJet on Thursday said it has settled a $90.8 million (₹767 crore) longstanding dispute with Export Development Canada (EDC) for $22.5 million, allowing the airline to take full ownership of 13 Bombardier Q400 aircraft. The settlement will save SpiceJet $68.3 million in operational costs, the financially-stressed airline said on Thursday.

"The agreement represents one of the largest settlements in SpiceJet's history, strengthening the airline's fiscal position, eliminating a significant liability from its balance sheet, and paving the way for sustained growth and operational efficiency," the company said.

The move also relieves SpiceJet from paying monthly rentals for the 13 planes, offering desperate financial relief.


SpiceJet described the settlement as a crucial step in improving its balance sheet, removing a significant liability, and reducing its operational costs. The debt-laden airline recently raised ₹3,000 crore to tide over its financial pressures.

"The resolution allows the airline to move forward with a strengthened balance sheet and focus on getting the Q400 aircrafts back into service as quickly as possible," Ajay Singh, chairman of SpiceJet said.

Shares of SpiceJet closed 3.2% higher at ₹55.37 on the BSE on Thursday, outperforming a nearly flat broader market.

SpiceJet plans to deploy the newly acquired Q400 aircrafts on regional and UDAN routes. Starting October 27, it has started services on new routes including Delhi-Amritsar, Guwahati-Patna, Kolkata-Patna, Delhi-Patna, and Delhi-Darbhanga.