SpiceJet Resolves ₹250 Crore Dispute with Celestial Aviation

29 Feb 2024 , 12:43 PM

SpiceJet and AerCap’s subsidiary Celestial Aviation have reached an agreement to settle their ₹250 Crore dispute, according to a stock market explanation issued on Wednesday. With this, the business claims it would avoid lawsuits and save ₹235 Crore.

Representatives from both parties told a bench of the National Company Law Tribunal (NCLT) last week that settlement terms had been agreed and asked an adjournment. The Court graciously granted the adjournment, it stated in a release.

The company will formally withdraw the case on March 1, 2024.

I am glad to report that SpiceJet and Celestial Aviation have reached a mutual agreement to end our $29.9 Million disagreement. This resolution is an important step forward for all parties and demonstrates our dedication to finding peaceful solutions to complicated issues, said Ajay Singh, SpiceJet’s Chairman and Managing Director.

SpiceJet, which recently laid off around 15% of its personnel, claimed that it has collected ₹316 Crore from investors in its second tranche of capital injection. The total money inflow amounts at ₹1,060 Crore. On January 27, it finished raising the first tranche of ₹744 Crore through preferential allocation of stocks.

The business intends to collect funds worth ₹2,250 Crore through the sale of shares and warrants.

The airline, which debuted in 2005, now has over 9,000 personnel and 30 planes, 10 of which are wet-leased. In the pre-pandemic year 2019, the airline had 118 planes and over 15,000 personnel.

Meanwhile, SpiceJet decreased its net loss to ₹428 Crore in Q2 FY2024, a considerable improvement over the net loss of ₹835 Crore in Q2 FY2023. SpiceJet conducts around 250 flights each day to 48 locations in India and beyond. Its fleet includes a variety of aircraft, including the Boeing 737 Max, Boeing 700, and Q400s.

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