SpiceJet shares jump 7% after it finalises settlement with lessor NAC

SpiceJet’s shares rose 7% to Rs 29 midweek after managerial negotiations with Nordic Aviation Capital. The two companies agreed to settle all past liabilities on Q400 leased by NAC to SpiceJet. As a result of the settlement, SpiceJet will introduce three additional Q400 aircraft from NAC, which had been repossessed by the lessor, back into the company’s fleet. The move will see a substantial increase in the number of planes in the fleet. The average target price of the SpiceJet stock is Rs 43, suggesting an upside potential of 49% from current prices.