SpiceJet, Genesis reach agreement in $16 million dispute, share prices shoot up

SpieceJet has reached an agreement with aircraft lessor Genesis and have resolved a $16 million dispute. Under the settlement, SpiceJet will pay Genesis $6 million and Genesis will acquire $4 million in SpiceJet equity at a price of Rs 100 per share.

The agreement will result in a significant saving for the airline as it navigates a path toward long-term growth. Following the agreement, SpiceJet share prices rose 7.84 per cent to intraday high of Rs 60.70 apiece.



The settlement is a part of the airline's continued commitment to restoring financial stability, achieving operational resilience, and reducing legal liabilities, the company said in a press release.

Both parties have agreed to withdraw all ongoing litigations and disputes related to this matter at the appropriate forums, subject to all settlement terms being fulfilled.

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.”


This settlement follows a series of successful resolutions with other lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, Export Development Canada, among others.

In September 2024, Carlyle Aviation agreed to convert $30 million of lease arrears into SpiceJet equity at INR 100 per share, signalling increasing confidence from stakeholders in the airline’s financial and operational recovery.

The airline's recent financial progress has been recognised by Acuité Ratings & Research Limited, which recently upgraded SpiceJet's credit rating by four notches.