SpiceJet settles Rs 250 cr dispute with aircraft lessor Celestial Aviation

SpiceJet has settled a Rs 250 crore dispute with Celestial Aviation, a subsidiary of one of the largest aircraft lessor groups, through negotiations and has avoided the litigation route, the company said in a stock exchange clarification on Wednesday.

The matter is now scheduled to be withdrawn formally on March 1, and both parties have informed the National Company Law Tribunal (NCLT) bench about the settlement.

Two days ago, the airline informed the NCLT that the dispute with Celestial Aviation was "practically settled" and that only formalities remained.

"With this resolution, we can now focus on revamping our fleet and driving our business forward. I am grateful for the support of our stakeholders, including our investors, as we navigate through this process," Ajay Singh, the chairman and managing director of the budget airline, said in a press statement.

The press statement further said that the airline recently secured investments of Rs 1,060 crore through a preferential issue with notable investors, including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited, and part of this fund will be set aside to pay off past liabilities.

In October 2023, SpiceJet informed the tribunal that it was looking for a possible settlement with Celestial Aviation. In December 2023, SpiceJet told the tribunal that they had made some payments to the aircraft lessor. Celestial's counsel, Nitin Sarin, admitted to receiving the payment, though the airline missed some deadlines.

SpiceJet reported a 160 per cent jump in its consolidated net profit to Rs 110 crore for the December quarter.