SpiceJet Resolves $4.5 Million Dispute With Shannon Engine Support For $2 Million

SpiceJet settled a $4.5 million dispute with Shannon Engine Support for $2 million, its fourth debt settlement in recent weeks during financial restructuring efforts.

Gurugram:SpiceJet has announced the successful settlement of a $4.5 million dispute with Shannon Engine Support Limited (SES). The resolution saw SpiceJet negotiating a reduction of the claim to an aggregate payment of $2 million. Both parties have chosen to settle out of court, and all associated legal proceedings will be withdrawn from relevant forums, effectively closing the dispute.

This settlement with SES is the latest in a series of financial agreements SpiceJet has made over the past month as part of a broader strategy to restructure its financial commitments and stabilise operations.

On October 15, the airline announced the settlement of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited, with the claim reduced to a $5 million payout. Similarly, on October 9, SpiceJet settled a $131.85 million dispute with lessors under Babcock & Brown Aircraft Management, agreeing to a payment of $22.5 million. Prior to these, on September 24, SpiceJet reached a settlement with Engine Lease Finance Corporation (ELFC) on a $16.7 million claim.

Like many airlines worldwide, SpiceJet has faced considerable operational and financial challenges in recent years, intensified by economic fluctuations, high fuel prices and the lingering impact of the pandemic.

Commenting on the SES settlement, a spokesperson from SpiceJet stated that the airline is committed to meeting its financial obligations while taking strategic steps to ensure stability and sustainable growth. The recent settlements, achieved through out-of-court agreements, indicate a focused approach to strengthening financial resilience.