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SpiceJet settles dispute involving Rs 413 crore with Echelon Ireland Madison One

The latest settlement will result in savings of $48 million (Rs 398 crore), the airline said in a statement

Our Special Correspondent New Delhi Published 08.03.24, 10:25 AM
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SpiceJet said it has settled a dispute involving Rs 413 crore with aircraft leasing firm Echelon Ireland Madison One Ltd, making it the third dispute settlement to be announced by the crisis-hit carrier in less than two weeks.

The latest settlement will result in savings of $48 million (Rs 398 crore), the airline said in a statement.

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As part of the settlement of the Rs 413-crore dispute, SpiceJet will acquire two airframes.
Generally, an airframe is an aircraft without engines.

The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are of Boeing 737 NG planes.

“These successful settlements have resulted in a total savings of Rs 685 crore for the airline,” the statement said.

On March 5, the airline announced a settlement with aircraft leasing firm Cross Ocean Partners with respect to a dispute of about $11.2 million (Rs 93 crore).

As part of the arrangement, the airline will get an airframe and an engine.

Earlier, on February 28, SpiceJet said it has settled the $29.9-million (Rs 250 crore) dispute with Celestial Aviation. Celestial Aviation, which is a subsidiary of AerCap and SpiceJet, through amicable negotiations, avoiding the litigation route, a release said.

“With this resolution,
we can now focus on revamping our fleet and driving our business forward. I am grateful for the support of our stakeholders, including our investors, as we navigate through this process,” said Ajay Singh, the chairman and managing director of the budget airline.

The statement further said the airline recently secured investments of Rs 1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited, and part of this fund will be allocated towards settling past liabilities.

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