SpiceJet and Babcock & Brown Aircraft Management settle $131.85 mn dispute

SpiceJet and Irish aircraft lessor Babcock & Brown Aircraft Management have settled their dispute worth $131.85 million, said the airline on Wednesday. This comes after the airline last month raised Rs 3,000 crore through a QIP.

SpiceJet has achieved a significant financial milestone with the amicable settlement of its dispute with its the lessors, Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd., which are the lessors under the management of Babcock & Brown Aircraft Management (BBAM), stated the airline.

The dispute, valued in aggregate at $131.85 million (approximately ₹1,107 crore) with aforesaid lessors has been resolved for $22.5 million.


This settlement comes on the heels of SpiceJet’s successful resolution of a dispute with Engine Lease Finance Corporation (ELFC) on September 24, which had claimed $16.7 million.

“This landmark settlement with BBAM allows us to significantly reduce our liabilities and reinforces our efforts to emerge as a more robust airline. Together with the funds raised through our QIP, we are well-positioned to focus on growth, ungrounding our fleet, and expanding our services,” said Ajay Singh, Chairman and Managing Director of SpiceJet.

The airline on Tuesday announced it will expand its fleet by adding 10 more planes by November-end. Seven of these aircraft will be acquired on lease, while three previously grounded SpiceJet planes are being reintroduced into service.

The QIP attracted a diverse range of institutional investors and funds, including Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.

On September 24, SpiceJet announced it had resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC had previously claimed $16.7 million, and the settlement has been reached for an undisclosed amount, which is lower than the initial claim.

The shares of SpiceJet were trading with gains of 7.05 per cent as of 9:47 am, while the benchmark indices were up roughly 0.23 per cent.