SpiceJet settles $23.39 million dispute with aircraft lessors Aircastle and Wilmington Trust for $5 million

Budget airline SpiceJet has settled a $23.39 million dispute with aircraft lessors Aircastle and Wilmington Trust, according to a statement released by the carrier on Tuesday, October 15. This resolution comes shortly after the airline settled a similar dispute with US-based aircraft leasing firm BBAM, according to a PTI report.

The agreement will see all ongoing litigation and disputes between the parties withdrawn from relevant legal forums. SpiceJet has agreed to pay an aggregate sum of $5 million to settle the dispute, along with an agreement regarding the treatment of certain aircraft engines, as per the report.

Ajay Singh, Chairman and Managing Director of SpiceJet, told PTI, “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.”

This settlement is part of a series of financial agreements the airline has secured in recent weeks. Earlier this month, SpiceJet resolved a dispute with BBAM. Additionally, on September 24, the company settled a dispute with Engine Lease Finance Corporation (ELFC) for an undisclosed amount, lower than the initial claim of $16.7 million, as per PTI.

These resolutions mark significant progress for SpiceJet in addressing its financial challenges and legal disputes with lessors.

SpiceJet to enhance its fleet by another 10 aircraft

Meanwhile, on October 8, the Airline said it would enhance its fleet by another 10 aircraft by next month, with the first plane set to be inducted on October 10.

SpiceJet said in a release that seven of these aircraft will be acquired on lease, while three previously grounded ones are being reintroduced.

The Gurugram-headquartered airline has only 19 aircraft in operations, while as many as 36 planes were grounded as of October 8, according to the live aircraft fleet tracking website, Planespotter.net.

The announcement comes on the back of SpiceJet securing ₹3,000 crore fresh capital infusion through QIP late last month.

(With Inputs from PTI)