SpiceJet Resolves Debt Issues With Major Aircraft Lessor, Share Rise

Indian low-cost carrier Spicejet has recently announced a significant development in its operations. The company has entered into a settlement agreement with a major aircraft lessor, marking a positive turn in its financial restructuring efforts, Reuters Reported.

SpiceJet Ltd. stock increased on Wednesday after the airline reached a settlement with Nordic Aviation Capital (NAC), a significant lessor for its Q400 aircraft.

The airline, which presently has five Bombardier Q400 aircraft in its fleet from NAC, stated that the deal covers all previous obligations for the Q400s.

The Indian carrier has been struggling to raise money as a result of a string of quarterly losses, which have been made worse by some lessors suing the airline in order to collect unpaid fees and asking the nation's aviation regulator to de-register their aircraft.

The company's shares had their largest intraday percentage increase since June 9 as they climbed as high as 5.5%.
SpiceJet announced earlier this month that FTAI Aviation (FTAI.O), a lessor, would lease up to 20 engines as it worked to rebuild its fleet.

The carrier announced last month that, using its own funds and a $50 million line of credit that it obtained from an Indian government programme, it has started to restore 25 of its grounded fleet.