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  1. SpiceJet seals lease agreements for 10 aircraft ahead of summer schedule

SpiceJet seals lease agreements for 10 aircraft ahead of summer schedule

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2 min read • Updated: March 14, 2024, 12:33 PM

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The airline said its recent settlement pacts with lessors have resulted in cumulative saving of ₹685 crore and acquisition of three airframes

Shares of SpiceJet were recovering during the early trading hours on March 14

Budget carrier SpiceJet on Thursday, March 14, said it has finalised lease agreements for 10 aircraft to boost its capacity ahead of the summer schedule, which is usually marked by a surge in air travel.

“The additional aircraft will enable the airline to meet the growing demand for air travel, particularly during the busy summer months,” the airline said in a media release.

SpiceJet also noted that it has received three airframes as part of recent settlement agreements, which would further strengthen its fleet capabilities. The settlement pacts have also resulted in total savings of ₹685 crore for the carrier.

One of the three settlement agreements, with aircraft lessor Echelon Ireland Madison One Ltd, was announced on March 7. SpiceJet said it resulted in a saving of ₹398 crore, along with the acquisition of two airframes – the mechanical structures of aircraft that include undercarriage, fuselage and wings.

Additionally, the airline also resolved a ₹93 crore dispute with aircraft-leasing firm Cross Ocean Partners, resulting in the transfer of an airframe and an engine to Spicejet.

Earlier, the company settled its dispute with Celestial Aviation, a subsidiary of AerCap, which resulted in a saving of ₹235 crore.

Notably, SpiceJet’s shares were hammered at the markets earlier this week, after reports said that the airline’s Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia have stepped down.

The stock was recovering from the previous day’s low during the early trading hours on Thursday, March 14. The shares were trading at ₹53.2 apiece on the BSE at 11:26 am, higher by 5.5% as compared to the last closing price.