SpiceJet Settles $131.85 Million Dispute with Babcock & Brown, Strengthening Its Financial Position

SpiceJet has reached a settlement with the Irish aircraft lessor Babcock & Brown Aircraft Management for a dispute valued at $131.85 million. The airline announced this resolution on Wednesday, following its successful fundraising of ₹3,000 crore through a Qualified Institutional Placement (QIP) last month.

This settlement marks a significant financial achievement for SpiceJet, as it resolves claims from its lessors, Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd., all managed by Babcock & Brown Aircraft Management (BBAM). The total dispute has been settled for $22.5 million.

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This agreement comes shortly after SpiceJet successfully settled another dispute with Engine Lease Finance Corporation (ELFC) on September 24, where ELFC had initially claimed $16.7 million.

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 also announced plans to grow its fleet by adding 10 new planes by the end of November. Of these, seven will be leased, and three previously grounded planes will be brought back into service. The QIP attracted various institutional investors, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.

As of 9:47 am, SpiceJet shares were trading up by 7.05%, while the benchmark indices increased by approximately 0.23%.