Mumbai: Dubai Aerospace Enterprise, one of the world’s biggest aviation leasing companies, has hired global audit firm KPMG to conduct a due diligence on the finances of SpiceJetNSE 4.88 % to ascertain the carrier’s ability to pay periodic rents on leased aircraft and engines after a protracted lockdown grounded India’s air transportation industry.
KPMG’s mandate, said one of the three executives aware of the development, is to assess the impact of the shutdown on SpiceJet’s cash flows, a scrutiny of which is necessary to understand whether the carrier has sufficient cash to meet immediate payment obligations.
The assessment comes even as jet lessors globally are deluged with requests from airlines to offer payment relief and defer rentals, with the bulk of the world’s airline fleet remaining grounded.
“Some payments to Dubai Aerospace are coming up with respect to certain engines and planes, and the company wants to know whether SpiceJet would be able to honour these payments,” a source aware of the due diligence mandate told ET. “Certain requests by SpiceJet to its lessors have also been made to delay payments due to the lack of business.”
SpiceJet has leased a total of six Boeing 737 planes, coded VT-SGZ, SYW, SYX, SYY, SZA, and SZB, from Dubai Aerospace. The airline has a fleet of 82 Boeing 737 aircraft, two Airbus A320s, 32 Bombardier Q-400s and five B737 freighters.
11/05/20 Saloni Shukla/Anirban Chowdhury
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KPMG’s mandate, said one of the three executives aware of the development, is to assess the impact of the shutdown on SpiceJet’s cash flows, a scrutiny of which is necessary to understand whether the carrier has sufficient cash to meet immediate payment obligations.
The assessment comes even as jet lessors globally are deluged with requests from airlines to offer payment relief and defer rentals, with the bulk of the world’s airline fleet remaining grounded.
“Some payments to Dubai Aerospace are coming up with respect to certain engines and planes, and the company wants to know whether SpiceJet would be able to honour these payments,” a source aware of the due diligence mandate told ET. “Certain requests by SpiceJet to its lessors have also been made to delay payments due to the lack of business.”
SpiceJet has leased a total of six Boeing 737 planes, coded VT-SGZ, SYW, SYX, SYY, SZA, and SZB, from Dubai Aerospace. The airline has a fleet of 82 Boeing 737 aircraft, two Airbus A320s, 32 Bombardier Q-400s and five B737 freighters.
11/05/20 Saloni Shukla/Anirban Chowdhury
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