SpiceJet share price rallied over 5% in the early trade on Wednesday after reports that the company has entered into a settlement agreement with Nordic Aviation Capital, a major lessor for its Q400 aircraft. The stock price jumped as much as 5.49% to ₹29 apiece on the BSE.
According to a Reuters report, the settlement agreement between the Indian low-cost carrier and Nordic Aviation Capital settles all past liabilities for the Q400s leased by NAC to SpiceJet.
SpiceJet presently operates five Q400 aircraft from NAC in its fleet. Moreover, after this agreement, the airline will be inducting three additional Q400 aircraft from NAC back into its fleet.
The domestic airline has been facing problems with its lessors and many of its aircraft have been grounded.
Earlier this month, aircraft lessor Wilmington Trust SP Services (Dublin) Ltd had moved the National Company Law Tribunal (NCLT) to initiate insolvency against Indian low cost carrier SpiceJet.
Prior to that aircraft lessor Aircastle and engine lessor Willis lease finance had moved the tribunal for recovering their dues.
In May 2023, three planes of SpiceJet were deregistered by the Directorate General of Civil Aviation (DGCA) at the request of lessors.
The shares of SpiceJet have fallen drastically over the years. The stock price has plunged over 30% in the last one year.
At 10:30 am, SpiceJet shares were trading 2.22% higher at ₹28.10 apiece on the BSE.