SpiceJet today announced that it has fully settled a $90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a total of $22.5 million, now paid in full by the airline. This resolution marks a significant milestone for SpiceJet, resulting in a substantial saving of $68.3 million (Rs 574 crore). The agreement represents one of the largest settlements in SpiceJet'fs history, strengthening the airline'fs fiscal position, eliminating a significant liability from its balance sheet and paving the way for sustained growth and operational efficiency. As per the terms of the agreement, SpiceJet has acquired full ownership of 13 EDC'] financed Q400 aircraft. The transfer of ownership of these 13 planes will result in a substantial reduction in operational costs, strengthening the airline'fs operational capabilities and fleet management. It also brings long']term financial benefits, relieving SpiceJet from the obligation of monthly rental payments for these aircraft and further reinforcing the airline'fs financial stability. These aircraft will also enable SpiceJet to launch additional flights on regional and UDAN routes. Starting October 27, 2024, the airline has begun operating several new routes using the Q400, including Delhi']Amritsar']Delhi, Guwahati']Patna']Guwahati, Kolkata'] Patna']Kolkata, Delhi']Patna']Delhi, and Delhi']Darbhanga']Delhi. Recently, SpiceJet also introduced services on the Shivamogga']Chennai, Shivamogga']Hyderabad, and Chennai-Kochi sectors with the same aircraft. SpiceJet plans to roll out another 18 flights in phases as more Q400 aircraft return to service. Powered by Capital Market - Live

As per the terms of the agreement, SpiceJet has acquired full ownership of 13 EDC‐ financed Q400 aircraft. The transfer of ownership of these 13 planes will result in a substantial reduction in operational costs, strengthening the airline's operational capabilities and fleet management. It also brings long‐term financial benefits, relieving SpiceJet from the obligation of monthly rental payments for these aircraft and further reinforcing the airline's financial stability. This is one of the largest settlements in SpiceJet's history, strengthening the airline's fiscal position, removing a significant liability from its balance sheet and paving the way for sustained growth and operational efficiency, the company stated in press release. The airline added that, 'These aircraft will also enable SpiceJet to launch additional flights on regional and UDAN routes. Starting 27 October 2024, the airline has begun operating several new routes using the Q400, including Delhi‐Amritsar‐Delhi, Guwahati‐Patna‐Guwahati, Kolkata‐ Patna‐Kolkata, Delhi‐Patna‐Delhi, and Delhi‐Darbhanga‐Delhi. Recently, SpiceJet also introduced services on the Shivamogga‐Chennai, Shivamogga‐Hyderabad, and Chennai‐ Kochi sectors with the same aircraft. SpiceJet plans to roll out another 18 flights in phases as more Q400 aircraft return to service.' Ajay Singh, chairman and managing director, SpiceJet said, 'We are very pleased to have paid the settlement amount in full and closed this agreement with EDC. This resolution allows us to move forward with a strengthened balance sheet and focus on getting our Q400 aircraft back into service as quickly as possible. We are excited to expand our regional operations and enhance connectivity across key routes, including those under the UDAN scheme, with our revitalised fleet.' SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes. The low-cost air carrier's standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24. Powered by Capital Market - Live

These new routes will connect Jaipur with Varanasi, Amritsar and Ahmedabad, while also linking Ahmedabad with Pune. This expansion follows the recent launch of 32 new flights in October 2024, including two international flights connecting Delhi with Phuket. Last month, the company also commenced UDAN flights linking Shivamogga in Karnataka with Chennai and Hyderabad, and introduced double daily flights between Chennai and Kochi, enhancing connectivity across key regional and metropolitan cities. Debojo Maharshi, chief business officer, SpiceJet, said, 'We are excited to announce the launch of new flights from Jaipur to Varanasi, Amritsar, and Ahmedabad, as well as from Ahmedabad to Pune, providing our passengers with greater flexibility and convenience. These new flights reflect our commitment to supporting passenger demand across tier‐II cities and beyond. With our expanded winter schedule, including international and UDAN routes, we aim to provide our customers with greater convenience, affordability, and seamless travel experiences.' SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes. The low-cost air carrier standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24.Powered by Capital Market - Live

The agency has, meanwhile, affirmed the company's short term rating at 'ACUITE A4'. Acuit' Ratings stated that the upgrade in the rating takes into account the regularisation of the delays in the debt obligations from Yes Bank by Spice jet along with an improved liquidity position with the infusion of funds through QIP. The company has raised Rs 3000 crore through QIP (qualified institutional placement) in September 2024., the major investors incudes Goldman Sachs, Morgan Stanley, Nomura Singapore, etc. The company has planned to utilize this fresh QIP proceeds to pay off the all the statutory dues, settlement with their lessors, employee salaries, general corporate expenses, ungrounding of fleet, expansion from fresh fleets, etc. as per their revival plan in the aviation industry. As per the management, they have cleared all the pending airport dues, employee salaries and statutory dues (GST & TDS) amounting to Rs 684.99 crore as on 30 September 2024. Currently, SpiceJet's operational fleet of is 24. SpiceJet is planning to settle with the lessors and few of the settlement already took place post QIP. SpiceJet has booked revenue from operations of Rs 1,708.24 crore in Q1 FY 24-25 against Rs 2,003.59 crore in Q1 PY 23-24, thereby reducing the topline by 14.74%. This is mainly due to reduction in fleet size which led to declining market share over the period of time. The EBIDTA and net profits of the company is Rs 43.18 crore and Rs. 158.19 crore for Q1 FY 24-25 against Rs 265.46 crore and Rs 197.63 crore for Q1 PY 23-24 respectively. However, the rating is constraint due to the weak earning profile dented through the continuous losses from FY 2019 till FY2024 accordingly impacting the financial profile and liquidity position. Further there remains an execution risk as per their revival plan in the aviation industry and timely repayment of their operational and financial creditors post QIP. SpiceJet Limited was initially set up as an air taxi provider. In 1993, the company diversified into domestic aviation service provider. SpiceJet follows the low-cost carrier (LCC) business model with an objective to deliver the lowest air fares with the highest consumer value, to price sensitive consumers making flying accessible for the wider population. The scrip slipped 2.97% to currently trade at Rs 59.75 on the BSE. Powered by Capital Market - Live

SpiceJet has received a significant boost with Acuite Ratings & Research upgrading its long-term rating by four notches to B+ and its short-term rating to A4. The rating agency has also assigned a 'Stable' outlook to the airline. This remarkable four-notch upgrade highlights SpiceJet's sustained efforts towards financial stability, operational resilience, and strategic growth initiatives. The improved credit rating not only reflects SpiceJet's strengthened financial position but also enhances its ability to secure assets through financial leases, a move that provides the airline with greater flexibility and cost advantages. This step is aligned with SpiceJet's ongoing commitment to expanding its fleet, improving operational efficiency, and delivering enhanced travel experiences to its passengers.Powered by Capital Market - Live

Spicejet has launched 32 new flights for the winter schedule beginning 27 October 2024. With 30 of these flights operating in the domestic sector and two connecting Delhi to Phuket with daily non‐stop service, SpiceJet aims to enhance connectivity and provide travellers with more options. The winter schedule will feature exciting new routes, including four new flights from Mumbai to Patna, Gorakhpur, Varanasi, and Goa. The airline will connect Patna to Ahmedabad, Guwahati, Kolkata, and Bengaluru; Chennai to Port Blair and Pune; Delhi to Phuket, Amritsar, Gorakhpur and Kolkata to Port Blair.Powered by Capital Market - Live

SpiceJet announced that it has successfully settled a $4.5 million dispute with Shannon Engine Support (SES) for an aggregate sum of $2 million. Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom. As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums. This settlement follows three other significant financial agreements by SpiceJet in recent weeks. On October 15, SpiceJet announced it had successfully settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited for an aggregate sum of $5 million. On 09 October, the airline successfully resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million. Prior to that, on September 24, the company had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for a lower amount.Powered by Capital Market - Live

SpiceJet announced that the Directorate General of Civil Aviation (DGCA) has removed the airline from its enhanced surveillance regime. The enhanced surveillance was initiated on 13 September 2024. As part of the enhanced surveillance, the DGCA conducted a total of 266 spot checks across various locations. 'It has been ensured that deficiencies and findings found during the spot checks have been subject to suitable rectification action by the operator. In light of the same and the financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime,' the DGCA said in a media statement.Powered by Capital Market - Live

SpiceJet has successfully settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) for an aggregate sum of $5 million, together with agreement in relation to the treatment of certain aircraft engines. Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom. As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums. This resolution further strengthens SpiceJet's commitment to restoring financial stability and mitigating legal liabilities. This settlement follows two other significant financial agreements by SpiceJet in recent weeks. On October 9, the airline successfully resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million. Prior to that, on September 24, the company had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for an undisclosed lower amountPowered by Capital Market - Live

SpiceJet announced the commencement of new UDAN flights connecting Shivamogga in Karnataka with Chennai and Hyderabad, starting from 10 October 2024. This launch marks Shivamogga's addition as a new station on SpiceJet's domestic network and is the airline's first new destination following its successful Rs 3,000 crore Qualified Institutional Placement (QIP), which has bolstered the airline's expansion and growth plans. The new flights will operate daily, except Tuesdays, providing convenient travel options for passengers between Shivamogga and major metro cities, thereby encouraging tourism, trade, and regional development. Additionally, SpiceJet is launching a double daily flight service connecting the key cities of Chennai and Kochi, also starting from October 10, 2024. This increased frequency will cater to the high demand for travel between these two important destinations.Powered by Capital Market - Live