AerCap, one of the biggest aircraft lessor firms, and airline operator SpiceJet have mutually settled their USD 29.9 million (Rs 250 crore) dispute through friendly discussions, averting legal action. Last Monday, the parties' representatives told the NCLT bench that the terms of the settlement had been negotiated and they thus asked for an adjournment. The postponement was granted by the Court.
The official withdrawal of the matter is now set for March 1, 2024. Through a preferential offer, SpiceJet has raised funds worth Rs 1,060 crore from significant investors, including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. These monies will be used in part to pay off previous debts.
"I am happy to announce that SpiceJet and Celestial Aviation have successfully resolved our USD 29.9 million dispute through mutual agreement," stated Ajay Singh, Chairman and Managing Director of SpiceJet. This settlement demonstrates our dedication to resolving complicated issues amicably and represents a major accomplishment for all sides. We can now concentrate on modernizing our fleet and expanding our company thanks to this settlement. As we proceed through this process, I am appreciative of the support that our stakeholders—including our investors—have provided.
According to reports, the airline intends to sell warrants and shares for Rs 22.50 billion in order to raise money.
SpiceJet, which has been dealing with a number of challenges, believes that the money that has been received will be crucial in supporting plans for operational development, such as improving the fleet, adding new routes to the network, and advancing technology. Low-cost carrier SpiceJet plans to fire at least 1,000 workers as part of its most recent action, which aims to save around Rs 100 crore annually.
In addition to guaranteeing profitable growth, a SpiceJet representative revealed on February 13 that the airline was rationalizing its workforce as part of a cost-cutting plan. Launched in 2005, the airline now employs over 9,000 people and operates 30 aircraft, 10 of which are wet-leased. The airline employed about 15,000 people and operated a fleet of 118 aircraft in the year before to the pandemic.
In the meantime, SpiceJet significantly improved from its net loss of Rs 835 crore in Q2 FY2023 to Rs 428 crore in Q2 FY2024.About 250 flights per day are operated by SpiceJet to 48 locations in India and beyond. A variety of aircraft, including the Boeing 737 Max, Boeing 700, and Q400s, are part of its fleet.
