In a significant financial breakthrough, SpiceJet has successfully resolved a $131.85 million (Rs1,107 crore) dispute with its lessors, Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd, under the management of Babcock & Brown Aircraft Management (BBAM). The settlement, finalised for $22.5 million, which marks one of the largest financial agreements in the airline’s history.
This resolution is a critical step in shaping SpiceJet's balance sheet and reducing liabilities. It follows the airline’s recent settlement with Engine Lease Finance Corporation (ELFC) over a $16.7 million claim on September 24. The successive agreements reflect SpiceJet's dedication to resolving financial challenges and improving its operational stability.
Ajay Singh, Chairman and Managing Director of SpiceJet, stated, “This landmark settlement with BBAM allows us to significantly reduce our liabilities and reinforces our efforts to emerge as a more robust airline. Together with the funds raised through our QIP, we are well-positioned to focus on growth, ungrounding our fleet, and expanding our services.”
The airline had earlier raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) on September 20, attracting strong interest from leading institutional investors. The airline plans to expand its connectivity and offer passengers a seamless travel experience.
