SpiceJet has completed the allotment of equity shares to Carlyle Aviation Partners as part of its ongoing financial restructuring plan to strengthen the airline’s long-term stability. The move follows the settlement framework the airline revealed in September.
During a board meeting, SpiceJet approved the issuance of a little over 100 million equity shares at an issue price of INR 42.32 per share. Through this allotment, the financially stretched airline will be able to cut liabilities worth INR 442.25 crore from its balance sheet, a significant relief amid its ongoing operational and financial challenges.
As part of the settlement, SpiceJet will gain access to $89.5 million in total liquidity support. This includes $79.6 million in cash maintenance reserves, which will be used for future aircraft and engine maintenance activities. In addition, the airline will receive $9.9 million in cash maintenance credits, which can be used to offset lease payments to aircraft lessors.
The agreement also includes a unique mechanism: if Carlyle Aviation Partners sells the newly issued shares and earns more than $50 million in proceeds, a portion of the extra amount will go towards reducing SpiceJet’s future lease obligations. This gives the airline additional long-term financial breathing space.
Ajay Singh, Chairman and Managing Director of SpiceJet, said the fresh liquidity and reduced liabilities will help the airline continue its efforts to revive grounded aircraft and gradually expand operations. “The removal of liabilities, combined with access to substantial maintenance reserves and credits, provides us with meaningful support as we continue to revive our fleet and expand operations,” he said, thanking Carlyle Aviation Partners for its cooperation.
Carlyle Aviation Partners is the commercial aviation investment arm of Carlyle’s Global Credit division, which manages about $186 billion in assets globally as of March 2024.
Despite this restructuring progress, SpiceJet’s latest quarterly results highlight its ongoing difficulties. The airline reported a net loss of INR 635.42 crore for Q2 FY26, driven by foreign exchange losses, operational costs linked to grounded and reinduced aircraft, and airspace restrictions. This is wider than the INR 447.54 crore net loss reported during the same quarter last year.
However, the airline expects a better financial performance in the second half of the current financial year as the benefits of the restructuring and fleet revival begin to take effect.
