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SpiceJet says reached settlement on ₹413-crore dispute with Echelon Ireland Madison One

Ajay Singh, Chairman of Indian low-cost carrier SpiceJet.
| Photo Credit: REUTERS

SpiceJet on March 7 said it has settled a dispute involving ₹413 crore with aircraft leasing firm Echelon Ireland Madison One Ltd, making it the third dispute settlement to be announced by the crisis-hit carrier in less than two weeks.

The latest settlement will result in savings of $48 million (₹398 crore), the airline said in a statement.

As part of the settlement of the ₹413-crore dispute, SpiceJet will acquire two airframes.

Generally, an airframe is an aircraft without engines.

The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are of Boeing 737 NG planes.

“These successful settlements have resulted in total savings of ₹685 crore for the airline,” the statement said.

On March 5, the airline announced a settlement with aircraft leasing firm Cross Ocean Partners with respect to a dispute of about $11.2 million (₹93 crore). As part of the arrangement, the airline will get an airframe and an engine.

Earlier, on February 28, SpiceJet said it has settled the $29.9-million (₹250 crore) dispute with Celestial Aviation.

On March 7, shares of the airline jumped 3.52% to ₹64.10 apiece in the morning trade on the BSE.

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