Ireland-based aircraft lessor Aircastle recently resolved their insolvency case with Indian low-cost carrier SpiceJet, reaching a $5.6 million settlement. The agreement, initially announced in mid-October 2024 by SpiceJet, was officially confirmed by both companies to the National Company Law Tribunal (NCLT) in India on November 27, 2024. A SpiceJet exchange filing on November 28, 2024, indicated that the settlement signifies a positive step in the airline's efforts to enhance partnerships. The airline stated, “The settlement was reached for an aggregate sum of $5.6 million, alongside an agreement on the treatment of certain aircraft engines,” to Business Standard on the same day, highlighting the amicable nature of the negotiations that avoided prolonged legal proceedings.

This resolution is part of SpiceJet's ongoing efforts to address disputes with various partners, particularly aircraft lessors. In a previous instance last month, the airline finalized a $23.39 million dispute with Aircastle and the Dublin branch of Wilmington Trust. Despite this recent agreement, SpiceJet still faces other pending claims, as evidenced by notices from lessors Sabarmati Aviation and Jetair 17, and an insolvency request made by Falgu Aviation Leasing for a default of $8.1 million on October 24, 2024.

To strengthen its financial position, SpiceJet had raised Rs 3,000 crore (approximately $360 million) through a Qualified Institutional Placement (QIP) in September 2024. This infusion of funds is expected to bolster the struggling low-cost airline's operations and mark a turning point in its path to recovery and stability. Stay tuned to Pilotcenter.net News for more updates on SpiceJet's progress and the aviation industry!