SpiceJet Soars 4% After Settling $48 Million Lessor Dispute

7 Mar 2024 , 12:25 PM

SpiceJet’s stock shot up 4% after the troubled airline operator declared that a ₹413-Crore dispute had been resolved.

SpiceJet settled a legal battle with Echelon Ireland Madison One, which will save the airline $48 Million, or ₹398 Crore. Two airframes will be acquired by SpiceJet as part of the arrangement, “enhancing the airline’s fleet and operational capabilities,” the statement read.

Notably, with the carrier’s recent funding, this settlement represents the third significant resolution for the company. For the airline, these successful settlements have meant total savings of ₹685 Crore.

SpiceJet shares were trading at ₹64.55 at 11.10 a.m. on the BSE, 4.25% higher than the closing price of the previous session.

“We are happy to inform that our disagreement with Echelon Ireland Madison One Ltd has been successfully resolved, which represents another important step forward for SpiceJet. Ajay Singh, chairman and managing director of SpiceJet, stated, “This settlement not only demonstrates our commitment to financial prudence, but it also allows us to further fortify our fleet with the acquisition of two airframes.”

SpiceJet declared on February 28 that it and Celestial Aviation had reached a mutually agreeable settlement of their $29.9 Million, or ₹250 Crore, dispute, saving ₹235 Crore.

The airline declared on March 5 that it and aircraft leasing company Cross Ocean Partners had settled a disagreement over roughly $11.2 Million, or ₹93 Crore. The airline will also gain from the agreement’s free transfer of an engine and an airframe, which will improve its operational capabilities.

The airline operator’s shares have increased by about 60% in the last six months. In contrast, over the same time frame, the benchmark Nifty 50 has increased by about 14%.

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