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Spicejet gains on settling $16-million dispute with Genesis As on : 19-Dec-24  11:47

Under the agreement, SpiceJet will pay Genesis $6 million, and Genesis will acquire $4 million in SpiceJet equity at a price of Rs 100 per share. The agreement will also result in a significant saving for the airline as it navigates a robust path toward long-term growth.

The settlement with Genesis underscores SpiceJet's continued commitment to restoring financial stability, achieving operational resilience, and reducing legal liabilities. Subject to the settlement terms being satisfied, both parties have agreed to withdraw all ongoing litigation and disputes related to this matter at the appropriate forums.

This settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support, and Export Development Canada, among others.

In September 2024, Carlyle Aviation agreed to convert $30 million of lease arrears into SpiceJet equity at Rs 100 per share, signalling increasing confidence from stakeholders in the airline's financial and operational recovery. The airline's recent financial progress has been recognised by Acuit' Ratings & Research Limited, which recently upgraded SpiceJet's credit rating by four notches.

Ajay Singh, Chairman & MD, SpiceJet, said, 'This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.'

SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s, & freighters and is the country's largest regional player operating multiple daily flights under UDAN, or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress, offering cargo connectivity across India and on international routes.

The low-cost air carrier's standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24.

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