SpiceJet settles dispute of over USD 16 million with Genesis

New Delhi [India], December 19 (ANI): Airline SpiceJet has settled dispute of over USD 16 million with Dublin-headquartered Genesis Aircraft Services, commercial aircraft leasing company, the company stated on Thursday.

Under the agreement, SpiceJet will pay Genesis USD 6 million and Genesis will acquire USD 4 million in SpiceJet equity at a price of Rs 100 per share, the company added.

The agreement will also result in a significant saving for the airline as it navigates a robust path toward long-term growth.

The settlement with Genesis underscores SpiceJet's continued commitment to restoring financial stability, achieving operational resilience, and reducing legal liabilities. Subject to the settlement terms being satisfied, both parties have agreed to withdraw all ongoing litigations and disputes related to this matter at the appropriate forums.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet."This settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, Export Development Canada, among others.

In September 2024, Carlyle Aviation agreed to convert USD 30 million of lease arrears into SpiceJet equity at INR 100 per share, signalling increasing confidence from stakeholders in the airline's financial and operational recovery.

The airline's recent financial progress has been recognised by Acuite Ratings and Research Limited, which recently upgraded SpiceJet's credit rating by four notches.

Budget airline SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s and Q-400s and is one of the country's largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline's fleet offers SpiceMax, the most spacious economy-class seating in India. (ANI)