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SpiceJet inks MoU with Avenue Capital for financing, acquisition of up to 50 aircraft

The MoU sets out the conditions on which New York-based Avenue Capital will assist SpiceJet with its new aircraft portfolio, SpiceJet said in a statement.

March 31, 2021 / 12:24 PM IST

SpiceJet has signed a Memorandum of Understanding (MoU) with New York-based Avenue Capital Group for a strategic alliance in respect of the financing, acquisition, and sale and lease-back of 50 new planes to be ordered by the airline, the low-cost airline said in a statement.

The MoU sets out the conditions on which Avenue will assist SpiceJet with the new aircraft portfolio including sale and lease-back, and in the assumption of ownership of potentially up to 50 aircraft, the airline said.

“We are delighted to enter into this strategic alliance with Avenue Capital Group and we look forward to closely working with them. This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long term," Ajay Singh, Chairman and Managing Director, SpiceJet said.

Sources close to the airline told Moneycontrol that the MoU, apart from covering the present order that the air carrier has, may also include a new order that the airline places. "That is also taken care of here." But it is yet not known which aircraft this could be.

Following the news of the alliance, SpiceJet's shares surged by two percent in the early trade on March 31.

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first published: Mar 31, 2021 11:58 am