New Delhi: Low-cost carrier SpiceJet has reportedly settled a significant dispute with Genesis Aircraft Services, an aircraft leasing company, based in Dublin. The problem reportedly runs into more than USD 16 million and has been settled as of December 19, 2024. Under the settlement, the Company will pay cash worth USD 6 million to Genesis, while Genesis will be given shares of SpiceJet of the value of USD 4 million at ₹100 per share. This agreement is going to provide the airline with some relief as it works towards long-term growth.
The settlement is a giant leap for SpiceJet in fixing its finances and stabilizing operations. Both parties have agreed to withdraw all of its ongoing legal cases once the settlement terms are completed. Ajay Singh, Chairman and MD of SpiceJet, called this deal an important move towards the airline’s financial stability. He expressed satisfaction with the way the negotiations went and point out that the deal helps reduce the airline’s debt and strengthens its financial position and will boost its growth.
This is not the first time that SpiceJet has settled disputes with lessors. The airline had earlier settled some disputes with other companies such as Horizon Aviation and Engine Lease Finance Corporation. In September 2024, Carlyle Aviation had converted USD 30 million of lease payments into shares of SpiceJet at the same price of ₹100, which depicts more trust in the airline’s reviving prospects.
SpiceJet has also done well on the improvement of its financial position. Just recently, Acuite Ratings and Research upgraded the credit rating of the airline by four notches considering the efforts it has put in to overcome its issues.
It is operating a fleet that is mainly dominated by Boeing 737s and Q-400s and plays a key role in India’s regional connectivity program through the UDAN scheme set to make flying accessible. SpiceJet services to its passengers include services like SpiceMax, which gives additional legroom in economy class for a more comfortable flight.
That would certainly make up the positive settlements for SpiceJet from coming out of the financial doldrums. With such an agreement, it would handle all those disputes and help increase stakes in confidence from stakeholders while moving on to better times.
