In its ongoing financial restructuring efforts, SpiceJet claimed to have made "the biggest breakthrough" on Tuesday when it reached "a settlement with Export Development Canada (EDC) to resolve $91 million (Rs 755 crore) liabilities."

The airline claims that this will result in savings of $68.3 million (about Rs. 567 crore) and enable it to fully own 13 Q400 planes that were funded by EDC. By signing the agreement, SpiceJet is released from the responsibility of maintaining consistent monthly leases for these aircraft. Since 12 of these Q400s are presently grounded, SpiceJet will be able to quickly begin service on a number of (very profitable) regional and UDAN routes once they have been renovated and put back into service, the airline stated.

SpiceJet will pay "a comprehensive settlement amount to resolve outstanding liabilities amounting to close to $91 million as per SpiceJet books of accounts" in accordance with the terms of the EDC agreement. This relieves SpiceJet of a significant financial load and creates the foundation for an improved balance sheet.

"We are happy to have reached this settlement agreement with EDC and we thank their leadership and management team for their cooperation, understanding, and progressive approach throughout the process," SpiceJet Chief Executive Officer Ajay Singh stated. We will be able to improve our balance sheet and set up the airline for long-term prosperity thanks to this important milestone. The airline took out a loan in 2011 to buy 15 aircraft, which is the source of the EDC obligations.