On Tuesday, SpiceJet has announced the successful resolution of a dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd, settling the matter for $5 million.
This agreement settles a claim originally totaling $23.39 million, but the airline continues to grapple with financial challenges, as evidenced by a newly filed insolvency case.
The airline revealed that the latest settlement also encompasses an agreement regarding the management of specific aircraft engines.
In a statement, SpiceJet confirmed, “All ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums,” signaling a potential step towards stabilizing its operations.
This resolution comes on the heels of another recent settlement involving a $131.85 million dispute with lessors Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd, for which SpiceJet agreed to pay $22.5 million.
Additionally, the airline had previously settled a claim with Engine Lease Finance Corporation (ELFC) regarding an initial demand of $16.7 million for an undisclosed sum.
Ajay Singh, SpiceJet’s Chairman and Managing Director, expressed satisfaction with the resolution, stating, “We are happy to have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. This settlement underscores our commitment to amicably resolving matters in the best interest of the company and all stakeholders.”
Despite these resolutions, SpiceJet faces a fresh challenge as aircraft lessor Aviator ML 29641 Ltd has initiated a new insolvency proceeding in the National Company Law Tribunal (NCLT) over unpaid rental dues amounting to approximately Rs 58 crore (around $7 million).
This case stems from a lease agreement for a Boeing 737 aircraft established on 16 June 2017.
The NCLT has permitted SpiceJet to prepare its response, with the next hearing scheduled for 11 November.
The airline’s financial woes have resulted in multiple insolvency petitions related to unpaid obligations to various vendors and lessors.
Recent court rulings have also mandated the grounding of leased engines and aircraft due to these outstanding debts, indicating a pressing need for the airline to address its financial stability moving forward.
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