Ireland-based aircraft lessor Aircastle has ended its insolvency case against Indian low-cost carrier SpiceJet after agreeing to a $5.6 million settlement.
SpiceJet first announced the settlement in mid-October 2024, but both companies officially notified the National Company Law Tribunal (NCLT) in India about the agreement on November 27, 2024.
In an exchange filing, issued on November 28, 2024, SpiceJet said that this settlement “marks a positive turn in the airline’s efforts to rebuild and strengthen ties with its partners.”
“The settlement was reached for an aggregate sum of $5.6 million, alongside an agreement on the treatment of certain aircraft engines,” the airline told Business Standard on November 28, 2024. “Both parties opted for an amicable negotiation process, successfully avoiding prolonged courtroom proceedings.”
SpiceJet has been working to resolve disputes with different partners, including aircraft lessors. Last month the airline announced that it resolved another $23.39 million dispute with Aircastle and the Dublin branch of Wilmington Trust.
Even though a recent agreement was made with Aircastle, the airline still has other unresolved claims. Last week, the NCLT sent notices to the airline in response to requests from lessors Sabarmati Aviation and Jetair 17. On October 24, 2024, Falgu Aviation Leasing filed another insolvency request due to a default of $8.1 million.
In September 2024, SpiceJet revealed that it had secured Rs 3,000 crore (around $360 million) via its Qualified Institutional Placement (QIP). This funding is anticipated to improve the financial situation of the struggling low-cost airline.