Spicejet agrees to out-of-court settlement with plane lessors

Indian airlines operator Spicejet on Wednesday said it has agreed to settle out-of-court the dispute over five aircraft rentals with lessors managed by BBAM Aircraft Leasing and Finance.

"Spicejet... has entered into an in-principle understanding with its five lessors managed by BBAM Aircraft Leasing and Finance with regard to five aircraft operated by the company," the budget airlines operator said in a regulatory filing with the Bombay Stock Exchange (BSE).

According to the company, under the understanding, the lessors have agreed to suspend court proceedings, including winding-up proceedings and deregistration process of aircraft, subject to SpiceJet satisfying the terms of settlement and parties executing definitive agreements.

Spicejet was pulled up by several aircraft leasing firms, including BBAM, after it failed on its rental payments due to a financial crunch on some of the operational Boeing 737 aircraft. This resulted in court proceedings.