SpiceJet Settles Major Aircraft Lease Dispute

Budget airline SpiceJet resolved a $132-million lease dispute with aircraft firm BBAM for $22.5 million. The settlement follows a recent Rs 3,000 crore capital raise, aiding SpiceJet's financial stability and operational efficiency. Chairman Ajay Singh emphasized the company's focus on growth and service expansion.

Budget airline SpiceJet announced on Wednesday that it has resolved a $132-million dispute with aircraft leasing company Babcock & Brown Aircraft Management (BBAM) in an amicable settlement.

The disagreement, initially valued at approximately $131.85 million (Rs 1,107 crore), involved lessors Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd, all managed by BBAM. The compromise was reached for a reduced amount of $22.5 million, according to SpiceJet's statement.

Following a successful Rs 3,000 crore funding through a QIP last month, this settlement aids SpiceJet in fortifying its financial standing and minimizing liabilities. By overcoming this substantial obstacle, the airline enhances its financial stability and operational effectiveness. Chairman Ajay Singh stated that with BBAM's settlement and new funds, SpiceJet is well-positioned to focus on growth, resume operations of its grounded fleet, and expand services.

(With inputs from agencies.)