SpiceJet Clears Rs 100 Crore Loan with City Union Bank, Releases Pledged Collaterals

New Delhi, July 3, 2023 – SpiceJet, one of India’s leading airline companies, announced on Monday that it has successfully completed the repayment of a loan worth Rs 100 crore to City Union Bank. With the payment of the final tranche of Rs 25 crore on June 30, 2023, SpiceJet has effectively closed the entire loan account that was initiated back in 2012, according to a press release by the airline.

The repayment of the loan amount has resulted in the release of all the securities that had been pledged with City Union Bank. This development also reflects SpiceJet’s commitment to resolving its financial obligations and strengthening its financial position.

SpiceJet

Furthermore, this repayment follows a successful settlement agreement between SpiceJet and Nordic Aviation Capital (NAC), a major lessor for SpiceJet’s Q400 aircraft. The agreement with NAC has effectively resolved all past liabilities associated with the Q400s leased by NAC to SpiceJet. Consequently, this settlement will facilitate the return and induction of three additional planes into the SpiceJet fleet.

As SpiceJet continues to rebuild its fleet and enhance its business operations, the company remains dedicated to finding amicable resolutions with all its creditors. The successful repayment of the loan and the settlement with NAC underscore SpiceJet’s efforts to strengthen its financial stability and foster positive relationships with its stakeholders.

SpiceJet, established in May 2005, is a prominent player in the Indian aviation industry. The airline currently operates approximately 250 daily flights, serving 48 domestic destinations within India as well as international routes. Its fleet comprises a diverse range of aircraft, including Boeing 737 Max, Boeing 700, and Q400s.

This recent milestone achieved by SpiceJet signifies another significant step towards its financial recovery and reinforces the airline’s commitment to delivering reliable and efficient services to its customers and stakeholders.

Furthermore, SpiceJet is a leading Indian airline that commenced operations in May 2005. With a strong focus on providing affordable and reliable air travel, SpiceJet has emerged as one of the preferred choices for passengers traveling within India and internationally. Also, the airline’s extensive network and modern fleet enable it to offer a seamless travel experience to its customers.

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