SpiceJet, one of India’s prominent low-cost carriers, has successfully repaid its entire ₹100 crore loan to City Union Bank, concluding the payment with the final tranche of ₹25 crore on June 30, 2023. The settlement follows an agreement reached with Nordic Aviation Capital (NAC), a major lessor for SpiceJet’s Q400 aircraft. With this development, SpiceJet aims to resolve past liabilities and strengthen its fleet and business operations.
The repayment of the ₹100 crore loan to City Union Bank marks a significant milestone for SpiceJet. The airline, which had availed the loan in 2012, stated, “The last tranche of ₹25 crore was paid on June 30, 2023, successfully closing the entire loan account.” This positive outcome comes after SpiceJet’s successful settlement agreement with Nordic Aviation Capital, a lessor for its Q400 fleet.
The settlement agreement, reached on June 21, addresses all past liabilities related to the Q400 aircraft leased by NAC to SpiceJet. The resolution of these obligations allows SpiceJet to focus on rebuilding its fleet and business operations. The carrier remains committed to finding amicable settlements with all its creditors as it strives to strengthen its position in the aviation industry.
Earlier this year, SpiceJet faced challenges when aircraft lessor Wilmington Trust SP Services (Dublin) Ltd initiated insolvency proceedings against the airline. Aircastle and Willis Lease Finance, other lessors and engine lessors, had also approached the National Company Law Tribunal (NCLT) to recover their dues. However, with the successful repayment to City Union Bank and the settlement with NAC, SpiceJet takes a significant step toward resolving its financial obligations.
In May 2023, the Directorate General of Civil Aviation (DGCA) deregistered three planes leased by SpiceJet at the request of lessors. While two of the grounded aircraft had been non-operational for an extended period, the suspension of deregistration for two other planes was requested by a lessor. SpiceJet clarified that these developments did not impact its operations and reaffirmed its commitment to bringing its grounded fleet back into service.
SpiceJet, known for its extensive domestic network of approximately 250 daily flights to 48 destinations within India and international destinations, operates a diverse fleet comprising Boeing 737 Max, Boeing 700, and Q400 aircraft. With the resolution of financial obligations and a focus on fleet expansion, SpiceJet aims to strengthen its position in the Indian aviation market and continue serving passengers with affordable travel options.
As SpiceJet clears its outstanding debts and enhances its operations, the airline aims to regain stability and build a sustainable future in the highly competitive aviation industry.
