By Raghav Aggarwal
SpiceJet on Tuesday said it has successfully settled a $23.39 million dispute with two aircraft lessors, Aircastle and Wilmington Trust, days after resolving a similar dispute with a US-based aircraft leasing firm, Babcock & Brown Aircraft Management.
This comes just weeks after it raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) last month.
As part of the settlement, all ongoing litigation and disputes between the parties will be withdrawn at appropriate forums, the airline said in a statement.
“SpiceJet is pleased to announce that it has successfully settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) for an aggregate sum of $5 million, together with agreement in relation to the treatment of certain aircraft engines,” the statement said.
“Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom.”
On October 9, the airline had resolved a $131.85 million dispute with lessors Horizon Aviation 1, Horizon II Aviation 3, and Horizon III Aviation 2 (under the management of Babcock & Brown Aircraft Management) for $22.5 million.
Before that on September 24, the company had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for an undisclosed lower amount.
“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,” said Ajay Singh, chairman and managing director of SpiceJet.
However, domestically, the airline continues to face pressure from lessors.
An aircraft lessor, Aviator ML 29641, has filed a new insolvency case against the company in the National Company Law Tribunal (NCLT) over unpaid rental dues totalling around Rs 58 crore. The case revolves around a lease agreement for a Boeing 737 aircraft signed on June 16, 2017.
Reports suggest that the NCLT has allowed SpiceJet time to file its response, scheduling the next hearing for November 11. Due to the airline’s financial difficulties and unpaid dues, it has been ordered to ground some of its leased engines and aircraft.