SpiceJet, one of India’s leading airlines, has successfully resolved its long-standing $16 million dispute with Genesis through an amicable settlement. As per the agreement SpiceJet will pay Genesis $6 million in cash and Genesis will acquire $4 million in equity in SpiceJet at a valuation of Rs 100 per share.

This resolution represents a significant financial saving for the airline, aligning with its strategic focus on long-term growth and stability.

Focus on Financial Stability and Operational Resilience

The settlement underscores SpiceJet’s commitment to restoring financial health and achieving operational resilience. By settling this dispute, the airline is reducing its legal liabilities and fortifying its path toward stability.

Ajay Singh, Chairman and Managing Director of SpiceJet, remarked: “This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.”

Both parties have agreed to withdraw all ongoing litigations and disputes, subject to the fulfillment of the settlement terms.

Previous Resolutions and Stakeholder Confidence

The settlement with Genesis is part of a broader effort by SpiceJet to address financial liabilities. In recent months, the airline has resolved disputes with multiple lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, and Export Development Canada.

Notably, in September 2024, Carlyle Aviation converted $30 million of lease arrears into equity in SpiceJet at Rs 100 per share. This move highlighted the growing confidence of stakeholders in the airline’s financial and operational recovery.

Positive Credit Rating Momentum

SpiceJet’s ongoing financial restructuring has been acknowledged by Acuité Ratings & Research Limited, which recently upgraded the airline’s credit rating by four notches. This significant improvement reflects the airline’s efforts to enhance its financial standing and operational efficiency.

The settlement with Genesis and previous agreements with other lessors demonstrate SpiceJet’s strategic focus on reducing debt and rebuilding stakeholder confidence. By converting liabilities into equity and fostering constructive negotiations, the airline is paving the way for long-term growth and sustainability in a competitive aviation market.