SpiceJet gained 3.25% to Rs 63.93 after the airline operator announced the resolution of $49.8 million (Rs 413-crore) dispute with Echelon Ireland Madison One.
SpiceJet stated that this settlement with Echelon Ireland Madison One will result in savings of $48 million (Rs 398 crore) for the company.As part of the settlement, SpiceJet will acquire two airframes, enhancing its fleet and operational capabilities. This marks the third major resolution for SpiceJet, resulting in total savings of Rs 685 crore and further solidifying its financial stability.
Ajay Singh, chairman and managing director of SpiceJet said, We are pleased to announce the successful resolution of our dispute with Echelon Ireland Madison One, marking another significant milestone for SpiceJet. This settlement not only underscores our commitment to financial prudence but also enables us to further fortify our fleet with the acquisition of two airframes.
Earlier, on 28 February, the airline company announced that it had mutually settled its $29.9 million (Rs 250 crore) dispute with Celestial Aviation resulting in savings of Rs 235 crore.
Just days later, on 5 March, the firm reached an agreement with Cross Ocean Partners, resolving a dispute of about $11.2 million (Ra 93 crore). This deal not only saved the airline money but also included the transfer of an airframe and engine at no additional cost, further enhancing SpiceJet's operational capabilities.
SpiceJet operates as an Indian airline with a focus on providing affordable and accessible travel options for a wide range of Indian passengers. The company holds IATA-IOSA certification and manages a fleet comprising Boeing 737s, Q-400s, and freighters.
The low-cost air carriers consolidated net loss narrowed to Rs 448.99 crore in Q2 FY24 as compared with a net loss of Rs 833.32 crore in Q2 FY23. Revenue from operations slipped 29% year on year to Rs 1,347.52 crore in the quarter ended 30 September 2023.
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