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SpiceJet on Monday said it had resolved a dispute with one of the two lessors, which had moved the Delhi High Court against it and secured an order for de-registration of six Boeing 737 aircraft.
The airline informed the BSE on Monday it had entered into an agreement with Wilmington Trust SP Services (Dublin) Limited, which has links to leasing company BOC Aviation, from which it had leased three aircraft.
SpiceJet shares jumped 7.2 per cent as the agreement eased concern over a court order last week, seeking to return six of SpiceJet’s 18 Boeing 737 planes to lessors who owed money.
“Under the said settlement agreement, the lessor has agreed to withdrawal of court proceedings and de-registration process of aircraft, subject to SpiceJet satisfying the terms of settlement,” the airline stated. A BOC Aviation spokesperson refused comment.
SpiceJet has also filed an appeal against the Delhi High Court order, which last week directed the Directorate General of Civil Aviation to de-register six Boeing planes of the airline.
The direction was passed on petitions filed by leasing companies Awas Ireland and BOC Aviation, which terminated the lease agreements over payment defaults. Both had leased three planes each to SpiceJet.
SpiceJet flies a fleet of 18 Boeing 737s and 15 Bombardier Q400 planes and the de-registration would have led to its losing one-third of its Boeing capacity.
In a statement last week, the airline had said the situation was different from what it was in late 2014.
It added it had received its first tranche of funding and was in the process of paying off creditors in a phased manner.
According to the airline, all taxes have been paid, all salaries are current, and several lessors who have supported the airline during the crisis have been paid off in full, while payment plan discussions are on with the remaining lessors.
Spicejet claims its operations are normal and on-time performance is now among the best in the country.
As part of its revival plan, SpiceJet plans to add eight to nine Boeings starting in April to take the active Boeing fleet to 25-26 in the summer, in addition to the 15 Bombardier Q400 aircraft that are owned by SpiceJet.
The airline will continue to add more aircraft in the second half of the year to take the Boeing fleet to 34-35 aircraft by the end of the year.
The budget airline is India’s fourth-largest carrier by market share, behind IndiGo, Jet Airways and Air India. It’s posted losses for six straight quarters.
BELEAGUERED CARRIER TAKES WING
The airline informed the BSE on Monday it had entered into an agreement with Wilmington Trust SP Services (Dublin) Limited, which has links to leasing company BOC Aviation, from which it had leased three aircraft.
SpiceJet shares jumped 7.2 per cent as the agreement eased concern over a court order last week, seeking to return six of SpiceJet’s 18 Boeing 737 planes to lessors who owed money.
“Under the said settlement agreement, the lessor has agreed to withdrawal of court proceedings and de-registration process of aircraft, subject to SpiceJet satisfying the terms of settlement,” the airline stated. A BOC Aviation spokesperson refused comment.
SpiceJet has also filed an appeal against the Delhi High Court order, which last week directed the Directorate General of Civil Aviation to de-register six Boeing planes of the airline.
The direction was passed on petitions filed by leasing companies Awas Ireland and BOC Aviation, which terminated the lease agreements over payment defaults. Both had leased three planes each to SpiceJet.
SpiceJet flies a fleet of 18 Boeing 737s and 15 Bombardier Q400 planes and the de-registration would have led to its losing one-third of its Boeing capacity.
In a statement last week, the airline had said the situation was different from what it was in late 2014.
It added it had received its first tranche of funding and was in the process of paying off creditors in a phased manner.
According to the airline, all taxes have been paid, all salaries are current, and several lessors who have supported the airline during the crisis have been paid off in full, while payment plan discussions are on with the remaining lessors.
Spicejet claims its operations are normal and on-time performance is now among the best in the country.
As part of its revival plan, SpiceJet plans to add eight to nine Boeings starting in April to take the active Boeing fleet to 25-26 in the summer, in addition to the 15 Bombardier Q400 aircraft that are owned by SpiceJet.
The airline will continue to add more aircraft in the second half of the year to take the Boeing fleet to 34-35 aircraft by the end of the year.
The budget airline is India’s fourth-largest carrier by market share, behind IndiGo, Jet Airways and Air India. It’s posted losses for six straight quarters.
BELEAGUERED CARRIER TAKES WING
- SpiceJet said the deal with Wilmington Trust resolves the future of three of the planes
- Wilmington Trust will withdraw court proceedings and refrain from trying to deregister aircraft, subject to SpiceJet satisfying the terms of the settlement, the carrier said on Monday
- Taxes & wages have been paid, and talks with lessors are continuing, the company said last week
