Low-cost airline SpiceJet has negotiated a settlement with one of its aircraft lessors as it pushes to restore its grounded fleet.

What Happened? The carrier has reached a settlement agreement with Nordic Aviation Capital (NAC), one of its major lessors, in relation to the liabilities associated with its Q400 aircraft.

This agreement effectively resolves all past obligations between the two parties, SpiceJet said in a statement. Presently, SpiceJet operates five Q400 aircraft leased from NAC as part of its fleet.

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The airline is set to reintroduce three additional Q400 aircraft from NAC back into its fleet. These three planes had previously been repossessed by the lessor.

With the induction of these aircraft and the ongoing fleet revival and an ongoing restoration program, SpiceJet expects a significant expansion of its fleet in the coming weeks.

Earlier this month, SpiceJet had also inked a deal with US-based FTAI Aviation to lease engines to revive its grounded fleet of 25 aircraft.

SpiceJet had preciously 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. 

Price Action: SpiceJet’s shares jumped 2.62% to ₹28.21 in early trade.

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