SpiceJet Resolves $90.8M Q400 Lessor Dispute for $22.5M
India’s SpiceJet has resolved a longstanding $90.8 million dispute with Export Development Canada (EDC) by paying $22.5 million, the airline confirmed in a Bombay Stock Exchange filing on November 14. The settlement follows SpiceJet’s financial restructuring efforts, including raising ₹30 billion ($355 million) in September, which has enabled the airline to address several liabilities.
The dispute dates back to a 2011 loan used to acquire 13 De Havilland Q400 turboprops. SpiceJet now owns these aircraft outright, including two operational units, VT-SUH and VT-SUO. The deal eliminates substantial monthly rental payments, significantly reducing operational costs and strengthening the carrier’s financial position.
Ajay Singh, Managing Director of SpiceJet, highlighted the importance of the settlement, stating, “This resolution allows us to focus on revitalizing our Q400 fleet and expanding services.”
SpiceJet has also settled a similar dispute with Nordic Aviation Capital over five Q400s earlier this year, further consolidating its fleet. Of SpiceJet’s 24 Q400s, only seven are currently operational, with the airline planning to resume service for additional aircraft.
The airline has already started or resumed several key regional routes, such as Delhi-Amritsar, Kolkata-Patna, and Shivamogga-Chennai, under India’s UDAN regional connectivity scheme. It plans to reinstate another 18 routes as more Q400s return to service.
This settlement marks a crucial step in SpiceJet’s recovery strategy, focusing on regional growth and operational stability.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com