Updated March 5th, 2024 at 15:13 IST

SpiceJet and lessor Cross Ocean Partners settle Rs 93 crore dispute

SpiceJet and lessor AerCap had recently settled a Rs 250 crore dispute through amicable negotiations.

Reported by: Business Desk
SpiceJet and Cross Ocean Partners | Image:PTI/ Representational
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SpiceJet settlement: Low-cost carrier SpiceJet on Tuesday announced that it has reached a settlement with aircraft leasing firm Cross Ocean Partners to resolve a dispute involving Rs 93 crore ($11.2 million).

In a communique, SpiceJet said that as part of the arrangement, the airline said will benefit from the transfer of airframe and engine at no additional cost. "The parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners," SpiceJet said in a release.

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SpiceJet has been facing multiple headwinds and is in the process of raising funds. Besides, the carrier has settled some disputes in recent times. 

“The parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners,” said the SpiceJet communique. 

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Also Read: SpiceJet and lessor AerCap settle Rs 250 crore dispute

The settlement is expected to result in significant savings for SpiceJet and also put an end to dispute. As part of the arrangement, the airline will also benefit from a transfer of an airframe and an engine at no additional cost, augmenting its operational capabilities, the release added. 

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“By resolving this dispute through amicable negotiations, SpiceJet and Cross Ocean Partners have demonstrated their commitment to finding mutually beneficial solutions and avoiding prolonged litigation,” the SpiceJet release further added. 

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation. This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities. We remain focused on sustaining the positive momentum and creating long-term value for our stakeholders."

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Notably, SpiceJet recently concluded a similar agreement with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups. The settlement, valued at $29.9 million- Rs 250 crore, further underscores SpiceJet's dedication to resolving disputes and strengthening its financial position.
 

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Published March 5th, 2024 at 14:37 IST