SpiceJet has signed a Memorandum of Understanding (MoU) with Avenue Capital Group, New York for a strategic alliance in respect of the financing, acquisition and sale and lease]back of 50 new planes to be ordered by the airline.

The MoU sets out the next steps and conditions upon which Avenue, as part of the strategic alliance with SpiceJet, will assist with placing of SpiceJetfs new aircraft portfolio including sale and lease]back of and also assumption of ownership of potentially up to 50 of theseaircraft.

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SpiceJet jumped 4.05% to Rs 91.25 while shares of Interglobe Aviation (IndiGo) rose 1.72% to Rs 1655.15 on BSE.

The centre had imposed a cap on domestic airfare after resumption of flights on 25 May last year, following a two month suspension of services imposed due to the lockdown, to curb the spread of Covid 19.

Airlines will be allowed to charge more from passengers as the government has allowed a substantial increase on the upper and lower limits of the price bands. For flights with duration between 90 to 120 minutes, the lower fare cap has been increased to Rs 3,900 from Rs 3,500. The cap on maximum chargeable fare has been increased to Rs 13,000 from Rs 10,000.

At present, the government has allowed domestic flights to operate up to 80% of their capacity.

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SpiceJet has allotted 4,86,854 equity shares of the Company of face value of Rs.10 each pursuant toexercise of options under SpiceJet Employee Stock Option Scheme - 2017.

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SpiceJet has allotted 4,86,854 equity shares of the Company of facevalue of Rs.10 each pursuant to exercise of options under SpiceJet Employee StockOption Scheme - 2017.

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