SpiceJet ties up with Avenue for sales and lease-back of up to 50 aircraft

SpiceJet said it has signed an initial pact with New York-based Avenue Capital Group for financing, acquisition and sales & lease-back of up to 50 new aircraft to be ordered by the airline

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.

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 andfreighters.