SpiceJet Board Approves Settlement Of Lease Obligations With Carlyle

SpiceJet Board approved the restructuring and settlement of aircraft lease obligations with Carlyle Aviation. As part of the settlement agreement, the aircraft carrier had announced last year that Carlyle Aviation will write off $40.17 million in lease arrears.

The carrier entered into an agreement with Carlyle Aviation Management to restructure certain aircraft lease obligations of about $137.68 million, which upon settlement or waivers will be adjusted to $97.51 million.

SpiceJet had said last year that it will issue shares worth $30 million to Carlyle, and also transfer $20 million worth of compulsorily converted debentures of SpiceXpress, a separate airline cargo company owned by the carrier.

This deal is expected to bring considerable relief to SpiceJet's balance sheet by reducing liabilities. Furthermore, it involves a review and potential revision of the current lease terms, including aspects like aircraft redelivery, grounded fleet revival, maintenance reserves, and engine overhaul planning.

SpiceJet quarterly results

Flying into the red, SpiceJet on Friday reported a net loss of Rs 238 crore for the three months ended June, saying expenses related to grounded aircraft and subdued leisure travel demand impacted the financials.

The budget carrier, which had been facing multiple headwinds, raked in a total income of Rs 1,190.56 crore in the first quarter of the current financial year. The same stood at Rs 2,067 in the same period a year ago, according to a regulatory filing.

In a statement, SpiceJet said the results were significantly impacted by the geopolitical situation with a neighbouring country and airspace restrictions in key markets, which led to subdued leisure travel demand.

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