Cash-strapped SpiceJet resolves Rs 93 cr dispute with Cross Ocean Partners

SpiceJet further stands to benefit from the 'transfer of airframe and an engine at no additional cost, augmenting its operational capabilities'

Low-cost Indian airline SpiceJet has announced a settlement with aircraft leasing firm Cross Ocean Partners, effectively resolving a dispute amounting to approximately $11.2 million (Rs 93 crore), through an exchange filing on Tuesday.

The agreement was disclosed before the Delhi High Court during the ongoing execution petition filed by Cross Ocean Partners. The mutually beneficial agreement between the two parties is anticipated to yield substantial savings for SpiceJet while bringing an end to the protracted disagreement.

Under the terms of the settlement, SpiceJet stands to benefit from the "transfer of airframe and an engine at no additional cost, augmenting its operational capabilities."

Ajay Singh, the chairman and managing director of SpiceJet, expressed satisfaction with the resolution, stating, "We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged, expensive litigation."

"This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities. We remain focused on sustaining the positive momentum and creating long-term value for our stakeholders," Singh added.

This comes shortly after the airlines concluded a similar agreement with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups outside the tribunal. This settlement was valued at $29.9 million (Rs 250 crore) and was a step towards fortifying the cash-strapped air carrier's financial standing.

On Monday, the airlines also announced that Abu Dhabi's sovereign wealth fund, Abu Dhabi Investment Authority (ADIA), had acquired shares of the airline from the open market.

Recently, the carrier has also managed to raise a total of Rs 1,060 crore through preferential issuance of securities.