SpiceJet signs MoU with Avenue Capital for financing acquisition of 50 new aircraft

Homegrown carrier SpiceJet today said that it has signed a Memorandum of Understanding (MoU) with Avenue Capital Group, New York. The MoUs has been signed for a strategic alliance for financing, acquisition and sale and lease‐back of 50 new planes to be ordered by the airline.

SpiceJet in a regulatory filing at BSE said, "SpiceJet, the countryʹs favourite airline and the largest regional player, has signed a Memorandum of Understanding (MoU) with Avenue Capital Group, New York for a strategic alliance in respect of the financing, acquisition and sale and lease‐back of 50 new planes to be ordered by the airline."

The MoU sets out the next steps and conditions upon which Avenue, as part of the strategic alliance with SpiceJet, will assist with placing SpiceJet's new aircraft portfolio including sale and lease‐back of and also the assumption of ownership of potentially up to 50 of these aircraft

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "We are delighted to enter into this strategic alliance with Avenue Capital Group and we look forward to closely working with them. This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long term."

Avenue Capital Group specialises in the field of aircraft leasing and has identified the new planes to be ordered by SpiceJet as a unique opportunity for investment.

Besides, the no-frills carrier has said it will add 66 new flights, including additional services on certain routes, in its domestic network from this week. These new flights, which will be operated with Boeing 737s and regional jet Bombardier Q400s, are aimed at augmenting connectivity between metro and non-metro cities as part of its enhanced network.