Gurugram (Haryana): The airline company SpiceJet has reached a settlement with Engine Lease Finance Corporation (ELFC) over a $16.7 million liability dispute. The agreement resolves the dispute for an undisclosed amount, reportedly lower than the initial claim. As a result, all ongoing litigation between the two parties will be withdrawn.
SpiceJet's Chairman and Managing Director, Ajay Singh, stated, "We have reached a mutually acceptable agreement with ELFC, enabling us to move forward."
"This settlement not only resolves past disputes but also strengthens our position as we enter the next phase of growth and expansion,” he added.
This development follows SpiceJet's recent Qualified Institutional Placement (QIP), which raised INR 3000 crore from institutional investors and mutual funds. The funds will be allocated for various strategic purposes. The airline has been navigating financial challenges, but this resolution allows it to focus on streamlining operations and expanding its business.
The settlement and QIP proceeds are expected to enhance SpiceJet's financial stability, allowing the airline to focus on operational growth and expansion. As a major regional airline, SpiceJet operates a fleet of Boeing 737s and Q-400s, participating in the government's Regional Connectivity Scheme (UDAN). SpiceJet's financial move is seen by many as a positive step in the Indian aviation sector.
