This Airline Company Ends Legal Battle, Settles Rs. 250 Crore Dispute With Lessor; See Details

Through amicable discussions, Indian airline SpiceJet and aircraft lessor Celestial Aviation, a division of AerCap, have effectively resolved their disagreement over Rs 250 crore ($29.9 million), averting a drawn-out judicial fight. The National Company Law Tribunal’s (NCLT) approval of the resolution is a favorable development for SpiceJet, enabling the airline to concentrate on fleet modernization and commercial expansion.

“I am pleased to announce that SpiceJet and Celestial Aviation have successfully resolved our $29.9 million dispute through mutual agreement,” said Ajay Singh, Chairman and Managing Director of SpiceJet, expressing his pleasure with the outcome. This settlement demonstrates our dedication to resolving complicated issues amicably and represents a major accomplishment for all sides.”This airline company resolves its dispute with the lessor for Rs 250 crore.
Officially planned for March 1, 2024, the settlement follows SpiceJet’s recent acquisition of stakes totaling Rs 1,060 crore via a preferential offer. Prominent backers such as Elara India Opportunities Fund and Aries Opportunities Fund have shown confidence in the airline’s potential. A portion of these monies will go toward paying off debts from the past, such as the settled lawsuit against Celestial Aviation.

Celestial Aviation filed for bankruptcy against SpiceJet in August of the previous year, claiming that the airline had neglected to pay $29.9 million for the lease of nine aircraft. This action was a part of a wider pattern in which five leasing businesses petitioned the NCLT to collect unpaid invoices from SpiceJet. The companies were Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd.

The case involving Alterna Aircraft is still pending even though the tribunal denied the insolvency petitions of Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December of the previous year. The lessor, which is domiciled in Ireland, has submitted an insolvency claim to the NCLT against SpiceJet, requesting the return of £11.1 million and £265,000, as required by British courts.

As of 3:10 PM, SpiceJet’s shares were trading on the Bombay Stock Exchange (BSE) at Rs 65.55 a share, with cuts totaling more than 1%. Nevertheless, the stock has shown resilient despite the current difficulties, rising by about 70% in the last year. The airline’s strategic decisions, such as the recent settlement with Celestial Aviation and the successful capital injection, are in keeping with this favorable market performance.

The resolution represents SpiceJet’s commitment to working together to develop solutions in the face of a difficult economic environment in addition to providing financial comfort. Investor faith in SpiceJet’s capacity for recovery and expansion is shown by the success of the preferential issuance and following investments.

With the official settlement of the conflict scheduled on March 1, 2024, SpiceJet anticipates a fresh start free from the looming legal uncertainty. The leadership of the airline expresses gratitude to all parties involved, especially investors, for their support during this pivotal period of change.