 "SpiceJet takes off 8% on resolving dispute with lessors for $22.5 mn")
SpiceJet share price soared 8 per cent on Wednesday, October 9, and registered an intraday high of Rs 67.98 per share. The stock extended its rally for a second consecutive session. SpiceJet share price gained after the airline company said that it had settled disputes with its lessors, Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd under the management of Babcock & Brown Aircraft Management (BBAM).
At around 10:14 AM, SpiceJet shares were up 6.43 per cent at Rs 66.84 per share. In comparison, the BSE Sensex traded 0.61 per cent higher at 82,130.31 around the same time.
In an exchange filing, SpiceJet said that the airline has settled the dispute for $22.5 million which was valued at $131.85 million (Rs 1,107 crore) with lessors.
"This settlement represents one of the largest financial agreements reached by SpiceJet, marking a substantial step towards strengthening the airline’s balance sheet and reducing its overall liabilities," the company said.
It added: By resolving this major dispute, SpiceJet has improved its financial stability and operational efficiency.
The development comes after the company resolved its dispute with Engine Lease Finance Corporation (ELFC) on September 24, which had claimed $16.7 million.
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"This landmark settlement with BBAM allows us to significantly reduce our liabilities and reinforces our efforts to emerge as a more robust airline," said Ajay Singh, chairman and managing director of SpiceJet.
On Tuesday, SpiceJet revealed its plan to expand its fleet by the end of November with the induction of ten aircraft. As per the filing, these aircraft will be acquired on lease, while 3 previously grounded SpiceJet planes are being reintroduced into service.
In the filing, SpiceJet said the airline has already signed agreements for the leased aircraft, with the full induction of all 7 planes expected by November 15. Two of these leased aircraft have already arrived in India and are scheduled for immediate induction, it added.
SpiceJet will also operationalise its grounded planes in phases, with the first three set to re‐enter service before the end of November. READ MORE
In the past one year, SpiceJet shares have gained 83 per cent against Sensex's rise of 25 per cent.