SpiceJet, Genesis Agree To Settle $16 Million Dispute

SpiceJet has agreed to settle a dispute with Dublin-based Genesis Aircraft Services for USD 16 million, the company stated today.

As per the agreement, SpiceJet will pay Genesis USD 6 million and latter will acquire a stake worth USD 4 million in SpiceJet at a price of ₹100 apiece.

The settlement will steer SpiceJet towards restoring financial stability, achieving operational resilience, and reducing legal liabilities. Notably, both parties have agreed to withdraw ongoing disputes and litigations related to this matter.

Ajay Singh, Chairman and Managing Director, 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.”

The settlement also throws light on a series of successful resolutions with various lessors including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, Export Development Canada, among others.

Operating close to 630 daily flights across 64 destinations, SpiceJet is a low-cost airline that operates a fleet of Boeing 737s and Q-400s. It is also the country's largest regional player operating multiple daily flights under UDAN or the Regional Connectivity Scheme.