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SpiceJet and aircraft leasing company Babcock & Brown settle over Rs 1,100 crore dispute
The settlement comes close on the heels of SpiceJet’s successful resolution of a dispute with Engine Lease Finance Corporation (ELFC) on September 24, which had claimed $16.7 million
SpiceJet to induct 10 aircraft by next month
SpiceJet on Wednesday settled its $131.85 million (approximately Rs 1,107 crore) dispute with its lessors, Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd, which are the lessors under the management of Babcock & Brown Aircraft Management (BBAM). In a stock exchange filing, SpiceJet said it resolved the dispute with the lessors for $22.5 million.
The no-frills carrier said that by resolving the dispute, the airline has "cleared a significant hurdle, paving the way for improved financial stability and operational efficiency".
The settlement comes close on the heels of SpiceJet’s successful resolution of a dispute with Engine Lease Finance Corporation (ELFC) on September 24, which had claimed $16.7 million. SpiceJet also raised Rs 3,000 crore via Qualified Institutional Placement (QIP) last month.
Ajay Singh, Chairman and Managing Director of SpiceJet, stated, “This landmark settlement with BBAM allows us to significantly reduce our liabilities and reinforces our efforts to emerge as a more robust airline. Together with the funds raised through our QIP, we are well-positioned to focus on growth, ungrounding our fleet, and expanding our services".
Yesterday, SpiceJet informed that it would be expanding its fleet by November-end by inducting 10 aircraft. According to the domestic carrier, seven aircraft will be acquired on lease, while three previously grounded planes will be reintroduced into service.
The airline has already signed agreements for the leased aircraft, with the full induction of all seven planes expected by November 15. Two of these leased aircraft have already arrived in India and are scheduled for immediate induction, the airline told in an exchange filing on Monday.
SpiceJet reported nearly a 20 percent year-on-year drop in net profit at Rs 158.2 crore for the first quarter of FY2025. In the corresponding quarter last year, the company posted a net profit of Rs 197.6 crore.
The revenue from operations fell 15% year-on-year to Rs 1,708 crore between April and June 2024 as against Rs 2,003 crore in the same period of the previous year.
SpiceJet shares were up 4.28 percent to Rs 65.49 on Wednesday at around 11:48 am.
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