SpiceJet, Genesis settle dispute over $16 million

New Delhi [India]December 19 (ANI): SpiceJet on Thursday said it has settled a dispute worth over $16 million with Dublin-based commercial aircraft leasing company Genesis Aircraft Services.

Under the agreement, SpiceJet will pay $6 million to Genesis, and Genesis will acquire SpiceJet equity for $4 million. $$100 per share, the company added.

The agreement will also provide significant cost savings for the airline, putting it on a solid long-term growth path.

The settlement with Genesis highlights SpiceJet’s continued commitment to restoring financial stability, achieving operational resilience and reducing legal liability. Subject to the terms of the settlement, the parties agree to withdraw all ongoing litigation and disputes relating to this matter in the appropriate forum.

Ajay Singh, Chairman and Managing Director of SpiceJet, said: “This settlement marks another critical step towards our financial stability. We are pleased that this matter has been resolved amicably with Genesis through constructive negotiations. Question. The agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.”

The settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, Export Development Canada and others.

In September 2024, Carlyle agreed to convert $30 million in lease arrears into SpiceJet equity at INR 100 per share, signaling increased stakeholder confidence in the airline’s financial and operational recovery.

The airline’s recent financial progress has been recognized by Acuite Ratings and Research Limited, which recently upgraded SpiceJet’s credit rating by four notches.

Low-cost airline SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s and Q-400s and is one of the largest regional airlines in the country, operating daily under the UDAN or Regional Connectivity Scheme Multiple flights. Most of the airline’s fleet is equipped with SpiceMax, India’s most spacious economy class seats. (Arnie)