SpiceJet has settled its Rs 100- crore payment to City Union Bank.
The last tranche of Rs 25 crore was paid on June 30, 2023, the low-cost airline said.
The payment would result in three additional planes joining its fleet.
This “successfully closes the entire loan account which was taken in 2012. The repayment of the loan amount releases all securities that had been pledged with the bank,” the company said.
The repayment to City Union follows an agreement with Nordic Aviation Capital (NAC), a major lessor of SpiceJet’s Q400 aircraft. “The agreement with NAC settles all past liabilities for the Q400s leased by NAC to SpiceJet and paves the way for the return and induction of three additional planes into the SpiceJet fleet,” it added.
SpiceJet has been facing trouble with its lessors with as many as 25 out of its 76 planes being grounded as of May this year. The news has come amidst the airline facing an insolvency petition at the National Company Law Tribunal (NCLT).
Pawan Hans
The government on Monday decided to call off the strategic disinvestment of Pawan Hans as the successful bidding consortium — Star9 Mobility Pvt Ltd — was disqualified in view of pending legal cases. Pawan Hans is a 51:49 joint venture of the government and ONGC.
This is second case of disqualification after Electronics Corporation of India Limited (ECIL).