SpiceJet (SG, Delhi International) has settled a USD90.8 million dispute with Export Development Canada (EDC) for a total of USD22.5 million, now paid in full by the airline, according to a November 14 Bombay Stock Exchange filing.

In March, ch-aviation reported that SpiceJet had come to terms with EDC on an issue that stems back to a 2011 loan made to the airline for it to acquire De Havilland Aircraft of Canada turboprops. The latest announcement confirmed payment and follows SpiceJet raising INR30 billion rupees (USD355 million) in September, since which the airline has settled several financial disputes.

The low-cost carrier said the EDC payment was one of the biggest settlements it has ever made, but it eliminates a significant liability from its balance sheet.

EDC financed thirteen DHC-8-Q400s that went to SpiceJet, specifically VT-SUB (msn 4374); VT-SUD (msn 4378); VT-SUE (msn 4379); VT-SUF (msn 4382); VT-SUG (msn 4387); VT-SUH (msn 4389); VT-SUI (msn 4395); VY-SUJ (msn 4396); VT-SUK (msn 4398); VT-SUL (msn 4400); VT-SUM (msn 4402); VY-SUO (msn 4404); and VT-SUP (msn 4412). Of that number, the ch-aviation fleets module indicates that only two, VT-SUH and VT-SUO are currently flying.

Under the agreement's terms, SpiceJet has acquired full ownership of the thirteen Q400s. The carrier says the deal will substantially reduce operational costs and bring long-term benefits - not least ending the monthly rental payment obligations.

“We are very pleased to have paid the settlement amount in full and closed this agreement with EDC," said SpiceJet Managing Director Ajay Singh. "This resolution allows us to move forward with a strengthened balance sheet and focus on getting our Q400 aircraft back into service as quickly as possible."

SpiceJet reached a similar deal with Nordic Aviation Capital in April over five other DHC-8-Q400s, with ownership of those aircraft transferring to the airline on settlement of outstanding liabilities. SpiceJet has twenty-four Q400s in total, but only seven are in service. The Nordic aircraft remain in storage. Five Q400s sourced from Chorus Aviation Capital are in service. The turboprops operate regional and UDAN routes throughout India.

SpiceJet says it has started or resumed operating several new city-pairs using the aircraft, including Delhi-Amritsar; Guwahati-Patna; Kolkata-Patna; Delhi-Patna; Delhi-Darbhanga; Shivamogga-Chennai; Shivamogga-Hyderabad International; and Chennai-Kochi. The airline says it intends to start or resume another eighteen Q400 routes as more aircraft come back into service.