SpiceJet partners with Avenue Capital
Mumbai: Budget carrier SpiceJet on Wednesday said it has signed an initial pact with New York-based global investment firm Avenue Capital Group for financing, acquisition and sales & lease-back of up to 50 new aircraft to be ordered by the airline.
The memorandum of understanding, signed between the two partners, sets out the next steps and conditions upon which Avenue will assist with placing of SpiceJet's new aircraft portfolio including sale and lease-back of and also assumption of ownership of potentially up to 50 of these aircraft, the company said in a statement.
Meanwhile, SpiceJet has introduced a 'zero change fee' offer under which passengers can modify dates or names on the ticket, at least seven days prior to the date of departure, without any charges.
This offer will be applicable to all bookings done between March 27 and April 4 for travel period between March 27 and June 30, said the airline's press release. "The offer thus aims to extend significant flexibility and cost savings to all its passengers in these unprecedented times...Fare difference will be applicable for flight changes and shall be payable by the customer," the release noted. This new offering allows passengers to modify tickets with one-time waiver of the charges, it said.
Founded in 1995 by Marc Lasry, the multinational firm is a pioneer in distressed debt besides having expertise in aircraft leasing. The company has identified the new planes to be ordered by the airline as a unique opportunity for investment, 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," SpiceJet Chairman and Managing Director Ajay Singh said. The airline, however, did not name the type of aircraft it was looking to acquire. Gurugram-based SpiceJet currently operates a fleet of Boeing 737s, Bombardier Q-400s and freighters.