SpiceJet, a low-cost carrier, notified the Delhi High Court on Tuesday that it and aircraft leasing company Cross Ocean Partners had reached a settlement agreement, ending their disagreement over approximately Rs 93 crore ($11.2 million). The airline informed the High Court today that as part of the agreement, it will also gain from the free transfer of an engine and an airframe, which will improve its operational capacities.
“We are happy to have worked with Cross Ocean Partners to come to a mutually agreeable arrangement that will stop the costly and time-consuming legal battle and save SpiceJet a substantial amount of money. Our resolve to efficiently resolve disputes with our partners and bolster our operational capacities is reaffirmed by this settlement. Our continued priorities include keeping up the good work and providing long-term value for our stakeholders," said Ajay Singh, Chairman and Managing Director, SpiceJet.
In addition, SpiceJet announced that it has reached a comparable arrangement with Celestial Aviation, a division of AerCap, one of the biggest groups of aircraft lessors. The $29.9 million (Rs 250 Crore) settlement is another example of SpiceJet's commitment to settling claims and improving its financial condition.
At 2:30 PM, SpiceJet's shares were up 3.07% to Rs 64.50.
SpiceJet announced on March 4th that shares of the airline were purchased from the open market by ADIA, the sovereign wealth fund of Abu Dhabi. SpiceJet declared on March 4 that "ADIA has acquired shares of the airline from the open market."
The source stated that the Abu Dhabi Investment Authority recently (late February) purchased airline shares off the open market, demonstrating the increasing interest of investors in SpiceJet.
The budget carrier is now soliciting donations. Through the preferential issuing of securities, the carrier has raised a total of Rs 1,060 crore in recent weeks. The airline had announced on December 12 that it would seek an additional Rs 2,250 crore in capital.
According to the stock exchange page, as of February 21, 2024, public shareholders, including Foreign Portfolio Investors (FPIs), held a 51.51 percent ownership in the carrier.
Together, Spicejet and Busy Bee Airways made an offer for the bankrupt carrier GoFirst last month. According to a press release from the business, Ajay Singh and Busy Bee Airways Private Limited have both placed bids in their individual capacities.
As the new airline's operating partner, SpiceJet is responsible for supplying personnel, services, and industry knowledge. The two carriers hope that this partnership would create synergies that will improve cost control, boost revenue, and solidify their positions in the Indian aviation sector.
