SpiceJet Resolves $23.39 Million Dispute with Aircraft Lessors for $5 Million

by B2B Desk 2024-10-15 09:46:38

Budget airline SpiceJet has successfully settled a USD23.39 million dispute with aircraft lessors Aircastle and Wilmington Trust. The airline announced on Tuesday, October 15, that it has reached an agreement to resolve the ongoing litigation and disputes, which will be withdrawn from relevant legal forums. Under the terms of the settlement, SpiceJet will pay a total of USD5 million, including an agreement regarding the treatment of specific aircraft engines.

Ajay Singh, Chairman and Managing Director of SpiceJet, commented, “We have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. With this and other significant settlements, SpiceJet continues to strengthen its financial position and lay the groundwork for a more resilient future.”

This resolution follows a recent settlement with US-based aircraft leasing firm BBAM and is part of a series of financial agreements the airline has secured in recent weeks. On September 24, SpiceJet also resolved a dispute with Engine Lease Finance Corporation (ELFC) for an undisclosed amount, lower than the initial claim of USD 16.7 million.

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These settlements mark significant progress for SpiceJet in addressing its financial challenges and legal disputes with lessors.

SpiceJet to Expand Fleet with 10 New Aircraft

In a related development, SpiceJet announced on October 8 that it plans to enhance its fleet by adding 10 new aircraft by next month. The first of these aircraft is scheduled to be inducted on October 10. According to the airline, seven of the new aircraft will be acquired on lease, while three previously grounded planes will be reintroduced.

As of October 8, SpiceJet operates 19 aircraft, while 36 planes remain grounded, according to the live aircraft fleet tracking website Planespotter.net. This fleet expansion comes on the heels of SpiceJet securing a Rs 3,000 crore fresh capital infusion through a Qualified Institutional Placement (QIP) late last month.

These strategic moves demonstrate SpiceJet’s efforts to strengthen its operational capabilities and financial stability.

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