The Indian low-cost carrier SpiceJet has struck a settlement with Engine Lease Finance Corporation (ELFC) to resolve a $16.7 million dispute between the two parties.
SpiceJet announced on September 24, 2024, through a regulatory filing, that an amicable settlement had been found for an undisclosed amount, though lower than the initial $16.7 million claimed.
“This settlement marks a significant step in SpiceJet’s ongoing efforts to streamline its operations and focus on future growth,” SpiceJet said in a statement.
The dispute was over non-payment for eight engines that ELFC leased to SpiceJet including interest and rental fees.
“The representatives of both parties will now formalise the settlement agreement, with a view to withdrawing all ongoing litigation and ending disputes between them,” SpiceJet said.
According to The Economic Times, in response to the settlement Ajay Singh, Chairman and Managing Director of SpiceJet said that the resolution “not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion”.
The settlement comes just days after SpiceJet announced it had raised Rs 3,000 crore (around $360 million) through its Qualified Institutional Placement (QIP).
In an interview with The Economic Times on September 23, 2024, following the new funding arrangement Singh said SpiceJet has “all the infrastructure ready to become a 100-strong fleet again”.
“We have the airport slots, international traffic rights, pilots and crew, as well as the maintenance infrastructure,” Singh said.
While the path may be a little clearer for SpiceJet following recent developments there are other claims yet to be resolved, including those by Aircastle and Alterna Aircraft.
