Shares of SpiceJet surged more than 5% on 14 November after the airline paid USD 22.5 million to resolve a dispute with Export Development Canada (EDC) over USD 90.8 million and regain possession of 13 Q400 aircraft.

The company said in a statement that this settlement will save USD 68.3 million (Rs 574 crore).

“fully settled a USD 90.8 million (Rs 763 crore) dispute with Export Development Canada (EDC) for a total of USD 22.5 million,” the carrier said in a statement on Thursday.

Additionally, 13 Q400 aircraft that were financed by EDC have been fully owned by SpiceJet, a measure that will lower operating costs. Additionally, these planes will allow SpiceJet to start more flights on UDAN and regional routes.

The decision, according to SpiceJet Chairman and Managing Director Ajay Singh, enables the airline to proceed with a strengthened balance sheet and concentrate on restoring Q400 aircraft to service as soon as feasible.

As a crucial step in its financial recovery plan, SpiceJet has raised Rs 3,000 crore through a Qualified Institutional Placement (QIP).

A disagreement with lessors under Babcock & Brown Aircraft Management (BBAM) was previously resolved amicably, according to the carrier, for $22.5 million. The settlement sum is a significant decrease from the $131.85 million first claim, SpiceJet stated in a stock exchange filing.

At 1:36 pm, the shares of SpiceJet were trading 4.60% higher at Rs 56.10 on NSE. 

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