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SPICEJET'S $90 MILLION DEAL WITH CANADIAN Q400 PLANES

SP’s Aviation

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Issue 11, 2024

SpiceJet has successfully resolved a significant dispute with Bombardier over a fleet of Q400 turboprop planes in the form of a $90 million settlement, marking the end of a prolonged legal battle that also has broader implications for the Indian aviation sector

- MANISH KUMAR JHA

SPICEJET'S $90 MILLION DEAL WITH CANADIAN Q400 PLANES

SPICEJET, INDIA’S PROMINENT LOW-COST AIRLINE, HAS successfully resolved a significant dispute with Canadian aircraft manufacturer Bombardier over a fleet of Q400 turboprop planes. The resolution comes in the form of a $90 million settlement, marking the end of a prolonged legal battle and financial tension between the two parties. This deal is particularly notable because it involves the acquisition of 13 Q400 aircraft, a key component of SpiceJet’s regional flight network.

According to the airline, the settlement will save SpiceJet $68.3 million in operational costs. On the final settlement and after the prolonged resolution, SpiceJet Managing Director Ajay Singh called the settlement a “major financial milestone”. He said the resolution would allow SpiceJet to move forward with a strengthened balance sheet and focus on the Q400 aircraft back into service as quickly as possible.

BACKGROUND OF THE DISPUTE

The roots of the dispute date back to a 2017 agreement between SpiceJet and Bombardier. Under the terms of this agreement, SpiceJet placed an order for up to 50 Q400 turboprop aircraft, with the intention of expanding its regional operations across India. The Q400 aircraft, known for their fuel efficiency and ability to operate in smaller, regional airports, were seen as a perfect fit for the airline’s expansion plans.

However, the deal quickly ran into complications. SpiceJet faced challenges related to delivery delays, technical issues with some of the aircraft, and concerns over the terms of the purchase agreement. These issues led to the airline and the manufacturer entering a prolonged dispute over the contract, with SpiceJet questioning the quality and the terms surrounding the fleet of Q400s. At one point, the airline sought to cancel or renegotiate the terms, citing the failures and non-compliance with certain delivery schedules.

THE LEGAL BATTLE

FLERE HISTORIER FRA SP’s Aviation

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ROLLS-ROYCE OPENS ITS LARGEST GLOBAL CAPABILITY CENTRE IN BENGALURU

Rolls-Royce has inaugurated its largest Global Capability and Innovation Centre (GCC) at Manyata Embassy Business Park in Bengaluru, further strengthening its long-term presence in India.

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1 min

Issue 9, 2025

SP’s Aviation

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MOD SIGNS CONTRACT FOR PROCUREMENT OF 97 LCA MKIA AIRCRAFT

Ministry of Defence (MoD) signed a contract with Hindustan Aeronautics Limited (HAL) for procurement of 97 Light Combat Aircraft (LCA) Mk1A, including 68 fighters and 29 twin seaters, along with associated equipment, for Indian Air Force, at a cost of over 62,370 crore (excluding taxes), on September 25, 2025.

time to read

1 min

Issue 9, 2025

SP’s Aviation

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PILATUS HANDS OVER THE FIRST PC-12 PRO

Following on from the launch of the new model in spring 2025, the very first customer, Dion Weisler, recently took delivery of his brand-new aircraft and personally flew it home from Switzerland to Australia.

time to read

1 min

Issue 9, 2025

SP’s Aviation

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“IAF - A SELF-ASSURED, CAPABLE AND GLOBALLY COMPETITIVE AEROSPACE POWER

On the occasion of the 93rd Indian Air Force Day, Air Chief Marshal A. P. Singh, Chief of the Air Staff, engaged in an in-depth conversation with Jayant Baranwal, Editor-in-Chief of SP's Aviation, and shared his insights on specific issues concerning the Indian Air Force

time to read

8 mins

Issue 9, 2025

SP’s Aviation

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SWEDEN ORDERS FOUR EMBRAER C-390 MILLENNIUM

Sweden acquired four C-390 Millennium multi-mission aircraft from Embraer.

time to read

1 min

Issue 9, 2025

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FROM BRAZIL TO BHARAT: EMBRAER'S COMMITMENT TO INDIA'S AIR POWER

Currently, nearly 50 Embraer aircraft — spanning 11 different types — operate in India across defense, commercial, and business aviation sectors. All are supported by Embraer's established service and support network in the country

time to read

3 mins

Issue 9, 2025

SP’s Aviation

CHARIOTS OF THE BATTLEFIELD – COMBAT HELICOPTERS

As warfare enters the era of multi-domain operations, combat helicopters are evolving with artificial intelligence, stealth, and manned-unmanned teaming, ensuring they remain relevant and strategically decisive in the battles of the future

time to read

7 mins

Issue 9, 2025

SP’s Aviation

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INDIAN AIR FORCE – POST OPERATION SINDOOR

Operation Sindoor highlighted the evolving nature of modern warfare, underlining the need for doctrinal shifts and operational reforms. The focus now lies on integrating new technologies, strengthening joint capabilities, and adapting strategies to ensure readiness for future multi-domain challenges.

time to read

6 mins

Issue 9, 2025

SP’s Aviation

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IAF - TARGET '42 SQUADRONS'

While the IAF's roadmap through Tejas Mk-1A / Mk-2, MRFA, and AMCA is conceptually sound, blending indigenous development with foreign procurement to manage risk and speed, the implementation may drag beyond the timeline. What is to be done?

time to read

5 mins

Issue 9, 2025

SP’s Aviation

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THE IAF'S MIG-21: FAREWELL TO A LEGEND

For over three decades, from the 1970s to the 2000s, the MiG-21 was the backbone of the IAF, even as more advanced jets like the Mirage 2000, the MiG-29 and the Su-30 MKI were acquired

time to read

5 mins

Issue 9, 2025

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