Restructuring Indian low-cost carrier Spicejet will add more flights using reactivated De Havilland Canada Dash 8 Q400s after disclosing a settlement to take ownership of 13 of the twin-turboprops.
SpiceJet says it has paid $22.5 million to settle a $90.8 million dispute with Export Development Canada (EDC) covering 13 Q400s the government agency had financed, noting this results in a ”substantial reduction” in operating costs and strengthens its operational capabilities.
The Indian carrier has spent much of the last two years battling to improve its financial position and trying to reactivate a string of aircraft grounded as its challenges mounted. It describes the settlement with EDC, one of the largest in its history, as a “major financial milestone”.
SpiceJet managing director Ajay Singh says: “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 with our revitalised fleet.”
The airline is using Q400 turboprops for the launch of a number regional flights and services under India’s regional air connectivity scheme, UDAN. It launched 32 routes at the end of October and plans to roll out another 18 flights in phases as more Q400 aircraft return to service.
