SpiceJet shares rise over 3% after settling Rs 763 crore dispute with Canada's EDC, acquires ownership of 13 Q400 planes

SpiceJet shares rise over 3% after settling $90.8 mn dispute with EDC, acquires full ownership of 13 Q400 aircraft

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26 Aug, 2025 12:21

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SpiceJet share price jumped over 4 percent on November 14 after the airline settled USD 90.8 million dispute with Export Development Canada (EDC) for USD 22.5 million, taking ownership of 13 Q400 planes.

This resolution will result in savings of USD 68.3 million (Rs 574 crore), the company said in a statement.

In a release on Thursday, the carrier said it has "fully settled a USD 90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a total of USD 22.5 million".

SpiceJet has also acquired the full ownership of 13 EDC-financed Q400 aircraft and the development will help in reducing operational costs. These aircraft will also enable SpiceJet to launch additional flights on regional and UDAN routes.

The development led to sharp uptick in the company's shares on the bourses with the counter rising to its intraday high of Rs 55.87 per share on the BSE, up by 4.17 percent. At around 12 pm, the shares were trading at Rs 55.31 apiece, 3.13 percent.

Acuité upgrades SpiceJet's long-term rating by four notches, assigns 'stable' outlook

Ajay Singh, Chairman and Managing Director of SpiceJet, said the resolution allows the airline to move forward with a strengthened balance sheet and focus on getting Q400 aircraft back into service as quickly as possible.

SpiceJet recently raised Rs 3,000 crore via a Qualified Institutional Placement (QIP) as a pivotal point in its financial recovery initiative.

Earlier, the carrier said that it has amicably settled its dispute with lessors under Babcock & Brown Aircraft Management (BBAM) for $22.5 million. The settlement amount is a notable reduction from the original claim of $131.85 million, said SpiceJet in a stock exchange filing.

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