Aviation News

SpiceJet resolves Rs 413 cr dispute with Echelon Ireland Madison One, ET Infra


Private carrier SpiceJet on Thursday announced the resolution of its Rs 413 crore dispute with Echelon Ireland Madison One. The company says this will result in savings of around Rs 398 crore.

As a part of the agreement, it would acquire two airframes.

Shares of SpiceJet rose on this development and were trading with gains of around 4.62 per cent as on 11:10 am.

“We are pleased to announce the successful resolution of our dispute with Echelon Ireland Madison One Ltd., 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,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

The low-cost carrier on March 5 said it settled a dispute involving around Rs 93 crore with aircraft leasing firm Cross Ocean Partners. As part of the arrangement, the airline said it will benefit from the transfer of airframe and engine at no additional cost.

Prior to that, SpiceJet reached an agreement with AerCap subsidiary Celestial Aviation, settling a dispute worth around Rs 250 crore.

“This settlement marks the third major resolution for SpiceJet following its recent fundraising. These successful settlements have resulted in total savings of Rs 685 Crore for the airline, further solidifying SpiceJet’s financial stability and balance sheet,” the company said in a press release.

SpiceJet’s fundraising moves

ET reported that the company will be laying off around 1,000 employees, roughly 15 per cent of its overall workforce. This will help the company save Rs 100 crore on an annual basis.

For SpiceJet, the newly raised funds will help towards financing operational growth plans which include expanding the fleet, extending route networks, and implementing technological upgrades.

  • Published On Mar 7, 2024 at 11:53 AM IST

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