SpiceJet Takes Ownership of 22 Aircraft Following Settlements with Lessors

In a series of strategic moves, SpiceJet, based at Delhi International, has successfully transferred the ownership of 22 aircraft from their lessors to the airline itself. This significant development encompasses nineteen DHC-8-Q400 turboprops and three Boeing jets, marking a pivotal moment in SpiceJet’s ongoing efforts to stabilize and enhance its operational fleet.

SpiceJet disclosed in a recent Bombay Stock Exchange filing dated April 2 that it had cleared all past dues for five Q400 aircraft leased from Nordic Aviation Capital, along with finalizing arrangements for an additional Q400 soon to be delivered to India. The resolution of these liabilities has resulted in the formal transfer of aircraft ownership to SpiceJet. This comes amid recent disputes with various lessors, which escalated to the extent of insolvency pleas filed against the airline in January.

This announcement follows closely on the heels of two similar statements by SpiceJet. On March 26, the airline reached a settlement with Export Development Canada (EDC), acquiring outright ownership of thirteen EDC-financed Q400 aircraft. This agreement resolved outstanding liabilities linked to a loan taken in 2011 for the acquisition of 15 De Havilland Canada turboprops, totaling nearly USD91 million.

Additionally, SpiceJet has concluded agreements with lessors Cross Ocean Partners and AerCap, securing ownership of three Boeing aircraft. SpiceJet’s leases included one Boeing 737-8 from AerCap and one 737-700 from Cross Ocean Partners. The specifics regarding the third Boeing aircraft, which has now come under SpiceJet’s ownership, are yet to be disclosed. The airline had recently settled out-of-court disputes with both lessors, addressing a USD11.2 million issue with Cross Ocean Partners and a USD29.9 million matter with Celestial Aviation Services Limited, an AerCap special purpose vehicle.

SpiceJet plans to refurbish the newly acquired Q400 turboprops and reintegrate them into service, aiming to launch flights across several regional and UDAN routes. These successful settlements are projected to yield savings of approximately INR12.5 billion (USD150 million) for the airline, which is currently undergoing a comprehensive restructuring, including equity raising initiatives.

The airline’s in-house fleet consists of 55 aircraft, featuring a mix of Boeing 737 variants and DHC-8-Q400 turboprops. Additionally, SpiceJet supplements its operations with eight wet-leased aircraft, including three 737-8s and one 737-800 from Corendon Airlines, along with four 737-800s from Corendon Airlines Europe.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation