SpiceJet gets ownership of six Q400 as part of settlement pact with lessor NAC, shares go up

Budget carrier SpiceJet on Tuesday, April 2, informed the bourses that it has received the ownership of six Q400 aircraft as part of a settlement agreement inked with lessor Nordic Aviation Capital (NAC).

Five of the six Q400 aircraft are already in the possession of SpiceJet, whereas one aircraft will be sent to the airline soon. “The sixth Q400 aircraft is en route to India from Germany and is expected to arrive in Delhi soon,” a press release noted.

Following the announcement at 10:36 am, the shares of SpiceJet went up at the stock markets. It peaked to ₹63.09 apiece on the BSE at 10:46 am, higher by around 2.5% as against the previous day’s close. By 11:30 am, the shares pared some of its gains to trade at ₹62.31 apiece, up nearly 1.2%.

SpiceJet said the timely arrival of the Q400 aircraft aligns with the upcoming summer schedule, when the number of domestic and international flights go up due to an increase in the footfall of passengers.

The settlement pact with NAC will also lead to long-term savings, liberating the airline from the obligation of regular monthly rentals for the six Q400 aircraft, SpiceJet said.

In the recent period, SpiceJet has inked four major settlements with key aircraft lessors. This resulted in savings of ₹1,252 crore, the airline claimed.

On March 26, SpiceJet announced a settlement with Export Development Canada (EDC), securing full ownership of 13 EDC-financed Q400 aircraft. This agreement resolved liabilities amounting to nearly $91 million, as per SpiceJet's records, and led to “savings of ₹567 crore”.

In addition to the EDC settlement, SpiceJet finalised three other noteworthy agreements, including those with aircraft leasing firms, Cross Ocean Partners and AerCap. These settlements collectively yielded savings of ₹685 crore, the airline said, adding that it also acquired three Boeing aircraft as part of these agreements.