SpiceJet today moved Delhi High Court seeking orders to DGCA not to de-register its six aircraft leased from two foreign firms, saying it has arrived at a settlement with one and was in process of settling with the other.
Credit: Reuter File Photo
Mumbai: Budget carrier SpiceJet on Wednesday (October 9) said it has amicably settled a US$132 million dispute with aircraft leasing firm Babcock & Brown Aircraft Management (BBAM).
The dispute, valued at $131.85 million (Rs 1,107 crore) with the lessors -- Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd -- has been resolved for USD 22.5 million, SpiceJet said in a statement.
All these lessors are under the management of BBAM.
The settlement, which comes after the company raised Rs 3,000 crore through a 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.