NEW DELHI: SpiceJet on Tuesday claimed to have achieved “the biggest breakthrough” in its ongoing financial restructuring efforts by reaches “a settlement with Export Development Canada (EDC) to resolve $91 million (Rs 755 crore) liabilities.” This, the airline says, will led to savings of $68.3 million (Rs 567 crore) for and allow it to acquire full ownership of 13 EDC-financed Q400 aircraft. The agreement with EDC “liberates SpiceJet from the obligation of regular monthly rentals for these aircraft. With 12 of these Q400s currently grounded, their refurbishment and subsequent return to service will enable SpiceJet to promptly launch flights on numerous (most profitable) regional and UDAN routes,” the airline said.
As part of the EDC agreement, SpiceJet will pay “a comprehensive settlement amount to resolve outstanding liabilities amounting to close to $91 million as per SpiceJet books of accounts. This alleviates SpiceJet of a substantial financial burden… lays the groundwork for a (better) balance sheet.”
SpiceJet CMD Ajay Singh said: “We are pleased to have reached this settlement agreement with EDC and we thank their leadership and management team for their cooperation, understanding and progressive approach through the process. This significant milestone will allow us to strengthen our balance sheet and position the airline for long-term success.” The
EDC liabilities
stem from a loan taken by the airline in 2011 for procuring 15 aircraft.
English (US) ·