SpiceJet settles dispute with Genesis of over $ 16 million; Airline will get a benefit
SpiceJet: The airline said that under the agreement, SpiceJet will pay Genesis $ 6 million and Genesis will acquire SpiceJet equity worth $ 4 million at a price of Rs 100 per share. According to the airline, this agreement will also provide significant savings to the airline, and it will move towards long-term growth.
Indian airline SpiceJet has settled a dispute of over US $ 16 million with Dublin-based Genesis Aircraft Services, a commercial aircraft leasing company. The company gave this information on Thursday.
The airline said that under the agreement, SpiceJet will pay Genesis $ 6 million and Genesis will acquire SpiceJet equity worth $ 4 million at a price of Rs 100 per share. As per the airline, this agreement will also provide significant savings to the airline, and it will move towards long-term growth.
The settlement with Genesis comes as part of SpiceJet's commitment to restore financial stability, achieve operational flexibility, and reduce legal liabilities. Under the settlement, both parties have agreed to resolve all litigation and disputes related to the matter at appropriate forums.
SpiceJet Chairman and Managing Director Ajay Singh said, "This settlement is another big step in our journey toward financial stability. We are delighted to have constructively negotiated and amicably resolved the matter with Genesis. This settlement, wherein the company would take an equity interest in SpiceJet, would therefore significantly reduce our liabilities besides further strengthening our Balance Sheet." The settlement comes after a series of successful resolutions with other lessors such as Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Ltd, and Export Development Canada.
Carlyle Aviation had in September 2024 agreed to convert lease dues of $30 million into SpiceJet equity at Rs 100 per share. These are indications of increased confidence among investors and stakeholders about the airline's financial and operational recovery.
Its recent financial progress was recognized by Acuite Ratings & Research Ltd, which recently raised SpiceJet's credit rating by four notches. The country's favorite budget-friendly airline, SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s and Q-400s and is the largest regional carrier operating several daily flights under the UDAN or Regional Connectivity Scheme. The majority of the airline fleet features SpiceMax - the most spacious economy class seating in India.
