SpiceJet pays $2 million to settle dispute with Shannon Engine Support

SpiceJet Limited, the low-cost airline operator, announced on Friday that the company paid an aggregate sum of $2 million and settled an ongoing dispute with Shannon Engine Support Limited (SES).

“SpiceJet is pleased to announce that it has successfully settled a $4.5 million dispute with Shannon Engine Support Limited (SES) for an aggregate sum of $2 million,” the airline said in an exchange filing. 

SpiceJet’s dispute settlement deal with Shannon Engine Support Limited was valued at $4.5 million, for which the airline paid $2 million, as per the statement.

SpiceJet Ltd’s shares were trading 4.88 per cent lower at ₹53.41 at 2:11 pm on Friday, compared to ₹56.15 at the previous market close. The company released the information about the settlement deal during market hours.

The company also said that both parties have reached an agreement of settlement through “amicable negotiations, choosing to resolve the matter outside the courtroom.” SpiceJet also said that all ongoing litigations and disputes between the two will be withdrawn at the appropriate forums, as per the exchange filing. 

SpiceJet prior settlements

The $4.5 million dispute settlement comes after three financial agreements by the airline in recent weeks. SpiceJet announced on October 15 that it had settled a $23.39 million dispute with the Ireland-based Aircastle Designated Activity Company and Wilmington Trust SP Services for $5 million.

The airline also negotiated a settlement to a $131.85 million dispute with its lessors — “Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million.” as per the filing. 

The airline's third settlement deal resolved a $16.7 million dispute with Engine Lease Finance Corporation (ELFC), which was settled for a lower amount, which the company did not specify, according to the official statement. 

Mint reported earlier that SpiceJet was losing its market share in Indian aviation, down to 2.3 per cent in August 2024, compared to its 5.6 per cent share in January 2024.