SpiceJet Expands Fleet with Two A320 Wet-Leases and Settles Major Finance Dispute with EDC

SpiceJet, one of India’s leading budget carriers, is set to enhance its operational capacity with the addition of two Airbus A320-200 aircraft, secured on an ACMI (Aircraft, Crew, Maintenance, and Insurance) basis for the IATA 2024 northern summer season. This strategic move will support the airline’s services from March 31 to October 26, covering a variety of domestic and international routes. The detailed route plan includes a six-day-per-week rotation connecting Ahmedabad with Goa Mopa, Ayodhya International, Dubai International, and other destinations. Additionally, the second A320 will facilitate connections between Ahmedabad, Chennai, Hyderabad International, and Varanasi, varying across the week to optimize coverage.

This fleet expansion is part of SpiceJet’s broader strategy to maintain flexibility in its operations and meet passenger demand effectively. The airline, traditionally known for its Boeing fleet, including B737 models and DHC-8-Q400s for short-haul domestic sectors, continually explores ways to enhance its service offerings through strategic aircraft leases. This includes the recent decision to wet-lease two A340s for the 2024 Hajj pilgrimage flights, demonstrating SpiceJet’s commitment to accommodating specific travel needs.

In a significant financial development, SpiceJet has also announced a resolution to its longstanding dispute with Export Development Canada (EDC). The settlement grants the airline full ownership of thirteen DHC-8-Q400 aircraft previously financed by EDC, addressing liabilities amounting to almost USD 91 million connected to a 2011 loan agreement for fifteen turboprops. This settlement marks SpiceJet’s largest financial resolution to date and is anticipated to yield substantial long-term savings.

The resolution of this financial obligation is a pivotal moment for SpiceJet, enabling the revival and reintegration of twelve grounded Q400 aircraft into its fleet. This development is expected to bolster SpiceJet’s regional and UDAN (Ude Desh ka Aam Nagrik) route operations, reinforcing its position in India’s competitive aviation market. Ajay Singh, SpiceJet’s managing director, highlighted the strategic importance of this settlement, emphasizing the anticipated operational benefits and cost efficiencies as the airline continues to navigate the challenges and opportunities of the aviation industry.