Aircastle withdraws insolvency case against SpiceJet following amicable settlement
Aircraft lessor Aircastle (Ireland) Designated Activity Company has withdrawn its insolvency case against SpiceJet before the National Company Law Tribunal (NCLT). This follows a mutually agreed-upon settlement, marking a positive turn in the airline’s efforts to rebuild and strengthen ties with its partners.
Last month, SpiceJet announced the resolution of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited. The settlement was reached for an aggregate sum of $5 million, alongside an agreement on the treatment of certain aircraft engines. Both parties opted for an amicable negotiation process, successfully avoiding prolonged courtroom proceedings.
As part of the settlement, all ongoing litigations and disputes between the two parties have been withdrawn from the appropriate forums.
This development marks another significant milestone for SpiceJet, which has been actively resolving disputes with various partners, including aircraft lessors. The airline’s recent successful Rs 3000 crore Qualified Institutional Placement has provided the necessary financial impetus to address these issues and strengthen its operations.
Recently in yet another major relief for SpiceJet, aviation regulator DGCA removed the low-cost carrier from enhanced surveillance regime. This action comes as the regulator is satisfied that SpiceJet is taking actions to rectify deficiencies following the fundraising.
The Directorate General of Civil Aviation (DGCA) had placed Spicejet under enhanced surveillance on September 13, 2024 over a severe cash crunch at the airline which had impacted its ability to discharge mandatory obligations of aircraft maintenance.
This action had resulted in increased spot checks and night surveillance to ensure the safety of the airline’s operations.
The regulator said a total of 266 spot checks were conducted at various locations as part of this monitoring effort. It added that deficiencies identified during these checks were addressed appropriately by the airline.
SpiceJet is an IATA-IOSA certified airline that operates a fleet of Boeing 737s & Q-400s and is one of the country’s largest regional players operating multiple daily flights under UDAN or the Regional Connectivity Scheme. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India.
Also Read: No plans of filing for insolvency: SpiceJet
