SpiceJet Joins Forces with FTAI Aviation Ltd
SpiceJet, a prominent budget carrier, has announced its collaboration with FTAI Aviation Ltd. (Nasdaq: FTAI), a leading provider of engine services, to implement a CFM56 revitalization program. The initiative aims to enhance operational efficiency by reducing maintenance costs, minimizing aircraft downtime, and optimizing overall performance.
Under the agreement, FTAI Aviation plans to lease up to twenty engines to SpiceJet and provide comprehensive maintenance services. By joining forces with the US-based engine services provider, SpiceJet expects to significantly lower maintenance expenses and ensure uninterrupted aircraft operations.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his optimism about the partnership, stating, “SpiceJet is steadily progressing towards its goal of rejuvenating our fleet and keeping our aircraft where they belong – soaring in the skies, serving our valued passengers. Our collaboration with FTAI Aviation is a significant step in that direction, as it guarantees the continuous operation of our fleet without concerns regarding engines or their maintenance.”
In May, SpiceJet initiated the revival process for its grounded fleet using the $50 million funds obtained from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) as well as internal cash accruals. This endeavor to reactivate 25 aircraft aligns with the airline’s strategy to capitalize on the upcoming peak travel season.
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Credit Suisse, a lender, has recently filed a contempt petition against SpiceJet, accusing the airline of non-payment of dues outlined in a settlement agreement. SpiceJet has clarified that the settlement amount is pending approval from the Reserve Bank of India and has assured the court that the scheduled payments for April and May will be made promptly.
By forging this strategic alliance with FTAI Aviation and taking proactive steps to revive its grounded fleet, SpiceJet aims to strengthen its position in the aviation industry and provide a seamless travel experience for its passengers.
SpiceJet is a budget airline based in Gurgaon, Haryana, India. It holds the position of the second largest airline in the country in terms of the number of domestic passengers it carries, currently maintaining a market share of 5.8% as of April 2023.
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