SpiceJet settles $23.39M aircraft lease dispute for $5M
Indian budget airline SpiceJet has settled a dispute with carriers Aircastle and Wilmington Trust for $23.39 million. The airline has agreed to pay $5 million, sharply undercutting the initial bid. The dispute involved several unpaid flights, a situation that had escalated into a legal matter.
The arrangement comes as a relief to SpiceJet, which is facing increasing cash crunch due to the COVID-19 pandemic, higher fuel costs and increased competition in the airline industry. The airline is working with creditors and debtors to restructure its financial obligations in order to stabilize its operations and avoid further problems. The settlement with Aircastle and the Wilmington Trust is part of a broader effort to address SpiceJet’s debt and liquidity challenges.
This decision will improve SpiceJet’s financial position, enabling it to focus on expanding its services without risking recalls or protracted legal battles The airline is also the independents enter others are in talks to tighten its budget to ensure smooth operations.