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Budget airline SpiceJet has entered into a Memorandum of Understanding (MoU) with Avenue Capital Group, New York for financing, acquisition and sale and lease-back of new planes.

Accordingly, the Avenue Capital Group are specialists in the field of aircraft leasing and have identified the new planes to be ordered by SpiceJet as a unique opportunity for investment.

The MoU is in respect of the financing, acquisition and sale and lease-back of 50 new planes to be ordered by the airline.

Notably, the MoU sets out the next steps and conditions upon which Avenue, as part of the strategic alliance with SpiceJet, will assist with airline's new aircraft portfolio including sale and lease-back of and "also assumption of ownership of potentially up to 50 of these aircraft".

"This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long term," said Ajay Singh, Chairman and Managing Director, SpiceJet.