SpiceJet Secures $89.5 Million Liquidity Boost Through Carlyle Settlement
On September 11, 2025, SpiceJet, one of India’s leading low-cost airlines, announced a landmark settlement with Carlyle Aviation Partners, unlocking a significant $89.5 million in liquidity. This deal marks a pivotal moment for the airline, which has been navigating financial challenges, including grounded aircraft and lease obligations. The agreement not only strengthens SpiceJet’s balance sheet but also signals renewed confidence from key stakeholders in its long-term growth prospects.
Details of the Settlement
The settlement with Carlyle Aviation Partners, the commercial aviation investment arm of Carlyle Group, provides SpiceJet with $79.6 million in cash maintenance reserves earmarked for future aircraft and engine maintenance. Additionally, the airline will receive $9.9 million in cash maintenance credits to offset its lease obligations. This financial boost is part of a broader restructuring agreement that addresses lease obligations totaling $121.18 million. As part of the deal, Carlyle will receive equity shares worth $50 million, significantly increasing its stake in SpiceJet.
A unique feature of the agreement allows for future financial flexibility: if Carlyle realizes proceeds exceeding $50 million from the sale of these shares, a portion of the excess will be applied to offset SpiceJet’s future lease obligations. Furthermore, SpiceJet’s promoter, Ajay Singh, or his designated assignee, retains the option to buy back the equity shares after the statutory and contractual lock-in periods expire, providing strategic control over the airline’s ownership structure.
Impact on SpiceJet’s Financial Health
The liquidity injection comes at a critical time for SpiceJet, which has faced operational and financial headwinds, including a reduced fleet size (from 74 aircraft in 2019 to 28 in 2024) and a net loss of ₹238 crore in Q1 FY26. The airline has attributed these challenges to geopolitical tensions, airspace restrictions, and supply chain disruptions affecting fleet maintenance. The $89.5 million boost will support SpiceJet’s ongoing restructuring efforts, including reviving grounded aircraft and enhancing operational efficiency.
Ajay Singh, Chairman and Managing Director of SpiceJet, described the settlement as a “significant milestone” in the airline’s restructuring journey. “The support extended by Carlyle demonstrates their confidence in SpiceJet’s long-term prospects. This transaction meaningfully reduces our liabilities, strengthens our balance sheet, and positions us well for sustainable growth,” he stated.
Market Response and Strategic Outlook
Following the announcement, SpiceJet’s share price surged over 5% in intraday trading on the BSE, reaching an intraday high of ₹34.85 on September 11, 2025, reflecting positive investor sentiment. Despite paring some gains to close at ₹33.70, the stock’s performance underscores market optimism about the airline’s financial restructuring.
The settlement is part of SpiceJet’s broader strategy to stabilize its finances and expand its operations. The airline has finalized lease agreements for 10 Boeing 737 aircraft starting in October 2025 and plans to reintroduce 10 grounded aircraft by April 2026, with 4–5 returning in early winter to meet peak travel demand. Additionally, SpiceJet is in discussions for further fleet expansion, including narrow-body and wide-body aircraft, to strengthen its network of 73 destinations, including 60 domestic and 13 international routes.
Looking Ahead
This settlement with Carlyle Aviation Partners is a critical step in SpiceJet’s turnaround strategy. By reducing lease liabilities and unlocking liquidity, the airline gains much-needed financial flexibility to address operational challenges and capitalize on India’s growing aviation market. With a fleet modernization plan, cost-efficiency measures, and strategic partnerships, SpiceJet is positioning itself for a sustainable recovery.
As the airline continues to navigate a competitive landscape, the Carlyle settlement not only bolsters its financial foundation but also reinforces stakeholder confidence in its vision for growth. Investors and industry watchers will be closely monitoring SpiceJet’s next steps as it works to unground its fleet, expand capacity, and reclaim its position in India’s aviation sector.
Disclaimer: The information in this blog is based on recent reports and should not be considered financial advice. Always consult a certified financial advisor before making investment decisions.
