Budget carrier SpiceJet on Wednesday said it has signed an initial pact with New York-based Avenue Capital Group to help finance and acquire 50 new planes to be ordered by the airline.

The memorandum of understanding signed between the two partners sets out the next steps and conditions under which Avenue will assist with placing of SpiceJet's new aircraft portfolio, including sale and leaseback of up to 50 planes.

The airline, however, did not name the type of aircraft it was looking to acquire. Sources said the MoU, apart from covering the present order that the air carrier has, may also include a new order.

Founded in 1995 by Marc Lasry, the multinational firm is a pioneer in distressed debt besides having expertise in aircraft leasing. The company has identified the new planes to be ordered by the airline as a unique opportunity for investment, SpiceJet said.

“We are delighted to enter into this strategic alliance with Avenue Capital Group and we look forward to closely working with them. This alliance will ensure a seamless induction of the planes in our fleet and help us plan better for the long-term,” SpiceJet chairman and managing director Ajay Singh said.