SpiceJet resolves dispute with ELFC, settles capitals for expansion

SpiceJet has successfully settled its long-standing dispute with Engine Lease Finance Corporation (ELFC), which had originally sought $16.7 million. Both parties agreed on an undisclosed, lower amount to resolve the matter, marking a significant step forward for SpiceJet as it continues to stabilise operations and pursue growth. The final settlement is expected to lead to the withdrawal of all ongoing litigation between the two entities.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are pleased to have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate. This agreement not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion.”

In parallel with this resolution, SpiceJet has significantly bolstered its financial position by raising Rs 3000 crore through a Qualified Institutional Placement (QIP), which was oversubscribed by a diverse mix of top-tier institutional investors and mutual funds. This strong market response reflects renewed confidence in SpiceJet's ability to navigate challenges and capitalise on increasing demand in the aviation sector.

The funds raised from the QIP will be allocated toward key strategic initiatives, including the settlement of outstanding liabilities, operational expansion, and improvements to the airline's fleet and services. With the dual achievement of resolving the ELFC dispute and securing substantial financial backing, SpiceJet is now well-positioned to strengthen its operations and drive future growth in an evolving and competitive industry.