SpiceJet share price: SpiceJet up 3% on settling $23 mn dispute with Aircastle & Wilmington Trust
Source: Business Standard
Spicejet(Photo: Shutterstock)
SpiceJet share price: Domestic carrier SpiceJet shares rose as much as 3.48 per cent to hit an intraday high of Rs 68 per share on Tuesday, October 15, 2024.
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In a statement, the company said, “SpiceJet is pleased to announce that it has successfully settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited for an aggregate sum of $5 million, together with agreement in relation to the treatment of certain aircraft engines.”
It further said that both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom.
“As part of the settlement, all ongoing litigation and disputes between the parties will be withdrawn at the appropriate forums,” SpiceJet added.
“We are pleased to have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. This settlement underscores our commitment to amicably resolving matters in the best interest of the company and all stakeholders,” said Ajay Singh, chairman and managing director, SpiceJet.
On October 9, the airline resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million.
On September 24, the company settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for an undisclosed lower amount.
“With this and other significant settlements, SpiceJet continues to strengthen its financial position and lay the groundwork for a more resilient future. We look forward to focusing on our operational goals and enhancing our customer experience,” Singh added.
SpiceJet is India’s second largest low-cost airline, providing essential connectivity to over 70 destinations, with a focus on affordable travel. Operating daily flights to 64 destinations—54 within India and 15 internationally—SpiceJet has established key hubs in Delhi and Hyderabad to facilitate its expansive network.
Founded in 1994 as ModiLuft, an air taxi service, the airline was rebranded in 2004 under the leadership of entrepreneur Ajay Singh. Since its inaugural flight in May 2005, SpiceJet has made major strides in the aviation industry, boasting a diverse fleet that includes Boeing 737 and Q400 aircraft.
At 12:00 PM, shares of SpiceJet were trading 1.66 per cent higher at Rs 66.80 per share. In comparison, BSE Sensex was trading 0.14 per cent lower at 81,860.62 levels.
First Published: Oct 15 2024 | 12:16 PM IST
