Low-cost airline SpiceJet has inked a deal with US-based FTAI Aviation to lease engines to revive its grounded fleet, sending its shares up 8%.

What Happened: SpiceJet will lease 20 engines from FTAI Aviation, which will also provide maintenance services – a move that will likely improve operational efficiency and reduce aircraft downtime.

SpiceJet said that the tie-up with FTAI will give it access to a robust pipeline of available engines and cut down the need for frequent shop visits, reducing maintenance expenses and improving overall performance.

See Also: Go First Collapse: Which Companies Would Emerge As Winners And Losers?

SpiceJet said the engines provided by FTAI will play a crucial role in supporting the reactivation of SpiceJet’s aircraft fleet over the next two to three months and help in servicing new routes and strengthening the airline’s resource allocation.

“SpiceJet is slowly but surely progressing towards its goal of restoring its fleet and ensuring that our aircraft stay where they rightly belong to i.e. in the skies serving our passengers,” said Ajay Singh, chairman and managing director of SpiceJet.

“Our partnership with FTAI Aviation is a step forward in that direction that would ensure that our fleet is up and running at all times without us worrying about engines or their maintenance. Quick and ready replacements will ensure that our planes are on the ground for minimal time.”

SpiceJet had rubbished speculation that the firm was dangerously close to insolvency after competitor Go First was awarded bankruptcy protection. SpiceJet also said it was in active talks with investors to raise funds to revive its 25 grounded aircraft. 

Price Action: SpiceJet shares were up 8% at ₹28.90 in morning trade on Thursday.

Read Next: Adani Group Likely To Dive Back Into Bond Markets By September