SpiceJet Ltd. has successfully settled a $23.39 million or nearly Rs 196 crore dispute with Aircastle (Ireland) Designated Activity Co. and Wilmington Trust SP Services (Dublin) Ltd. They reached a resolution for a reduced amount of $5 million and mutually agreed on the treatment of certain aircraft engines, thereby ending all ongoing litigation.
This settlement aligns with SpiceJet's ongoing efforts to strengthen its financial position and mitigate legal risks. The airline expressed satisfaction with the outcome, emphasising the importance of resolving disputes through negotiations rather than litigation.
“We are pleased to have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust,” said Ajay Singh, chairman and managing director of SpiceJet. “This settlement reflects our commitment to resolving matters amicably in the best interest of the company and all stakeholders,” he added.
From Turbulence To Clearer Skies
The agreement follows two major financial settlements recently, as the airline progresses towards stabilising its operations.
On Oct. 9, SpiceJet resolved a $131.85 million dispute with Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (managed by Babcock & Brown) for $22.5 million.
Prior to this, on Sept. 24, the airline settled a dispute with Engine Lease Finance Corp. (ELFC), originally valued at $16.7 million, for an undisclosed amount.
After a mid-air financial re-fuelling of Rs 3,000 crore via a qualified institutional placement, the airline aims to further enhance its operational efficiency through these settlements.
In an exclusive interview with NDTV Profit, Ajay Singh disclosed plans to increase the operational fleet to over 100 aircraft by 2026, confirming the already secured funding for the expansion.
Additionally, the airline has recently added seven new aircraft and brought three grounded planes back into operation, increasing its fleet size by 10.
The news of the settlement positively impacted SpiceJet's stock, which traded higher by 2.4% at Rs 67.32 on the Bombay Stock Exchange (BSE). The stock reached an intraday high of Rs 68 following the announcement.
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