Low-cost carrier SpiceJet on Wednesday announced a memorandum of understanding (MoU) with U.S.-based Avenue Capital Group for financing, purchase and sale and leaseback of 50 new planes.
“The MoU sets out the next steps and conditions upon which Avenue, as part of the strategic alliance with SpiceJet, will assist with placing of SpiceJet’s new aircraft portfolio, including sale and leaseback of and also assumption of ownership of potentially up to 50 of these aircraft,” the airline said in a statement.
In a sale and leaseback model, an airline acquires the aircraft at an attractive price and sells it to a lessor and leases it back for its own use.
“This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long term,” said Ajay Singh, CMD, SpiceJet.
The airline has an agreement with aerospace firm Boeing for a total of 205 aircraft, including a firm order for 155 Boeing 737 MAXs. The airline has a fleet of 100 aircraft, that include the grounded Boeing 737 MAX 8s, 737 NGs (Next Generations) and Bombardier Q-400s.