 "SpiceJet resolves Rs 413 cr dispute with Echelon Ireland Madison One")
After Cross Ocean Partners and Celestial Aviation, SpiceJet has announced the successful resolution of a dispute with Echelon Ireland Madison One Ltd., marking a significant milestone for the airline. The settlement, valued at $49.8 million (Rs 413 crore), has reportedly resulted in substantial cost savings for SpiceJet, which will help bolster the cash-strapped airline's financial position. The airline resolved this dispute in two weeks and announced it through a filing on the exchanges on Thursday.
Under the terms of the settlement, SpiceJet will benefit from the acquisition of two airframes, which will enhance its fleet and operational capabilities.
Ajay Singh, chairman and managing director of SpiceJet, expressed satisfaction with the resolution, stating, "This settlement not only underscores our commitment to financial prudence but also enables us to further fortify our fleet with the acquisition of two airframes."
Earlier, SpiceJet reached a settlement with Celestial Aviation and Cross Ocean Partners. The airline resolved a $29.9 million (Rs 250 cr) dispute with Celestial Aviation on February 28, resulting in savings of Rs 235 crore, according to the airline. Additionally, SpiceJet reached settlement terms with Cross Ocean Partners on March 5, resolving a dispute of approximately $11.2 million (Rs 93 crore) and acquiring an airframe and engine at no additional cost. This also ceased prolonged, expensive litigation that the airlines was undergoing.
Meanwhile, last month, Singh and EaseMyTrip co-founder Nishant Pitti, through Busy Bee Airways Private Ltd (BBAPL), announced that they had jointly submitted a bid for insolvent airline Go First, which ceased to fly in May 2023. The Supreme Court was not happy with this announcement and asked Singh to pay the outstanding dues to Credit Suisse first.
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