SpiceJet settles over $16 million dispute with Genesis
New Delhi| Indian airline SpiceJet has settled a dispute of over US$16 million with Dublin-based Genesis Aircraft Services, a commercial aircraft leasing company. The company gave this information. Under the agreement, SpiceJet will pay Genesis $6 million and Genesis will acquire SpiceJet equity worth $4 million at a price of Rs 100 per share, the airline said. According to the airline, this agreement will also bring significant savings to the airline, and will lead to long-term growth.
The agreement with Genesis comes as part of SpiceJet’s commitment to restore financial stability, achieve operational flexibility and reduce legal liabilities. Under the agreement, both sides have agreed to resolve all lawsuits and disputes related to this matter in appropriate forums.
SpiceJet Chairman and Managing Director Ajay Singh said, “This agreement is another important step in our journey towards financial stability”. We are pleased to resolve this matter amicably with Genesis through constructive dialogue. This agreement, in which Genesis will acquire an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet The agreement follows a series of successful solutions with other lessees such as Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, Export Development Canada.
In September 2024, Carlyle Aviation had agreed to convert $30 million of lease dues into SpiceJet equity at Rs 100 per share. The move is a sign of growing confidence among stakeholders in the airline’s financial and operational recovery.
The airline’s recent financial progress has been recognized by Acuit Ratings and Research Limited, which recently raised SpiceJet’s credit rating by four places. Budget airline SpiceJet is an IATA-IOSA certified airline operating a fleet of Boeing 737 and Q-400 and is one of the largest regional companies in the country operating multiple daily flights under UDAN or a regional liaison scheme. Most of the airline’s fleet features Spismax, the largest economy-class seating in India.
