Domestic carrier SpiceJet on Friday announced it settled a $4.5 million dispute with Shannon Engine Support Ltd (SES) for an aggregate sum of $2 million. This is the fourth such settlement in just over a month.
In a statement, the airline said that SpiceJet and Shanon Engine Support have reached this agreement through “amicable negotiations”, choosing to resolve the matter outside the courtroom.
As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums, it added.
On October 15, SpiceJet announced amicably settling a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd for an aggregate sum of $5 million.
On October 9, the airline said it resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd (under 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 a lower undisclosed amount.
However, new insolvency petitions against the airline continue to come in despite the settlements. Earlier this week, Falgu Aviation Leasing Ltd filed a plea in the National Company Law Tribunal against the carrier for defaulting around Rs 68 crore. Eusu Logistics’ Indian arm has also filed a plea for unpaid dues of Rs 2 crore.
The airline is yet to receive around Rs 750 crore from a previous Rs 3,000 crore funding round which may help it close these cases. It is aiming to expand its fleet to 100 planes by 2026. Currently, 36 of its planes are grounded due to a lack of spare parts.
SpiceJet is aiming to have a fleet of 40 aeroplanes by March 2025 and then expand further.