Following a successful settlement with three of its aircraft lessors, Indian airline SpiceJet witnessed its shares surge by 8% on wednesday.
The lessors involved in the agreement include Horizon Aviation 1, Horizon II Aviation 3, and Horizon III Aviation 2, which are managed by BBAM (Babcock & Brown Aircraft Management).
As per chairman & managing Director of SpiceJet Ajay Singh, this agreement with BBAM will substantially reduce the airline’s liabilities and position it for future growth.
“Together with the funds raised through our recent QIP, we are well-equipped to focus on expanding our fleet and improving services.” said Singh.
Notably, SpiceJet’s qualified institutional placement (QIP), which concluded on September 20, raised Rs 3,000 crore and saw strong interest from a diverse group of institutional investors.
As emphasised by Singh, the airline is committed in restoring its reputation for reliability and enhancing the overall passenger experience.
The settlement marks a major financial milestone for SpiceJet, helping the airline reduce its liabilities and strengthen its balance sheet.
The stock reacted positively to the news, climbing 8.24% to reach Rs 67.98 on the Bombay Stock Exchange (BSE). Over the past year, SpiceJet shares have rallied by an impressive 92.14%.
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