NEW DELHI: SpiceJet announced on Monday, July 3rd that it has successfully settled its payment of Rs.100 crore to City Union Bank. According to the company's statement, the final installment of Rs.25 crore was paid on June 30, 2023, effectively closing the loan account that was initiated in 2012.
Furthermore, this repayment to City Union Bank comes after SpiceJet reached a favorable settlement agreement with Nordic Aviation Capital (NAC). On June 21st, the airline entered into a settlement agreement with NAC, a significant lessor for its Q400 aircraft. A Reuters report confirms that this settlement agreement resolves all previous liabilities associated with the Q400s leased by NAC to SpiceJet. "We remain dedicated to establishing harmonious settlements with all our creditors as we rebuild our fleet and business," stated SpiceJet.
In the preceding month, aircraft lessor Wilmington Trust SP Services (Dublin) Ltd had taken legal action by filing for insolvency against SpiceJet, the Indian low-cost carrier. Prior to this, Aircastle, an aircraft lessor, and Willis Lease Finance, an engine lessor, had also resorted to legal measures in an attempt to recover their outstanding dues.
During May 2023, the Directorate General of Civil Aviation (DGCA) deregistered three planes belonging to SpiceJet at the request of lessors. A SpiceJet spokesperson clarified that out of the five planes listed for deregistration, one lessor requested DGCA to suspend the deregistration of two aircraft. The remaining three planes were already grounded for an extended period and were not in operation. Consequently, there was no impact on the airline's operations, as their focus remained on returning the grounded fleet to service.
SpiceJet currently operates approximately 250 daily flights to 48 destinations within India and internationally. Its fleet comprises various aircraft types, including Boeing 737 Max, Boeing 700, and Q400s.
