SpiceJet shares rise following airline’s settlement of disputes with vendors

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Shares of SpiceJet rose 1.16 per cent on Tuesday, reaching a high of ₹68. The stockhad climbed 3.4% earlier in the day. It recorded a low of ₹65.85. 

SpiceJet said it had resolved a $23.39 million dispute with Aircastle (Ireland) and Wilmington Trust & SP Services (Dublin) by agreeing to pay $5 million, alongside an agreement concerning the treatment of certain aircraft engines. The company stated that the settlement was achieved through amicable negotiations, outside of court.

SpiceJet has also settled disputes with multiple leasing companies, including Babcock & Brown. This involved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation.

Prior to these settlements, on September 24, the company resolved a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million. The settlement was reached for an undisclosed, lower amount.

These settlements come at a time when SpiceJet says it continues efforts to restore its grounded fleet and return to full operational capacity.“

This settlement underscores our commitment to amicably resolving matters in the best interest of the company and all stakeholders” said, Chairman and MD Ajay Singh.