- Wednesday, October 09, 2024
By resolving this dispute, SpiceJet has cleared a significant hurdle, paving the way for improved financial stability and operational efficiency
By: Shajil Kumar
BUDGET carrier SpiceJet on Wednesday said it has amicably settled a $132-million dispute with aircraft leasing firm Babcock & Brown Aircraft Management (BBAM).
The dispute, valued at $131.85 million (£100.80m) with the lessors – Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd – has been resolved for $22.5 million (£17.20m), SpiceJet said in a statement.
All these lessors are under the management of San Francisco-based BBAM.
The settlement, which comes after the company raised ₹30 billion (£273.21m) through qualified institutional placements (QIP) last month, will help SpiceJet strengthen its balance sheet and reduce overall liabilities, it said.
By resolving this major dispute, SpiceJet has cleared a significant hurdle, paving the way for improved financial stability and operational efficiency, the airline added.
“This settlement with BBAM allows us to significantly reduce our liabilities. Together with the funds raised through our QIP, we are well-positioned to focus on growth, ungrounding our fleet, and expanding our services,” said Ajay Singh, Chairman and Managing Director of SpiceJet.
Last month, the airline announced that it had successfully resolved its dispute with Engine Lease Finance Corporation for an undisclosed sum.
The airline plans to acquire seven aircraft on lease, and reintroduce three previously grounded ones by next month. (PTI)
