SpiceJet Settles Rs 413 Crore Dispute With Echelon Ireland Madison One

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are pleased to announce the successful resolution of our dispute with Echelon Ireland Madison One Ltd,"

SpiceJet announced on Thursday the successful resolution of a Rs 413 crore dispute with Echelon Ireland Madison One Ltd. This settlement is expected to yield savings of Rs 398 crore for SpiceJet. As part of the agreement, SpiceJet will acquire two airframes, thereby enhancing its fleet and operational capabilities. 

With this settlement, SpiceJet has now resolved three major disputes following its recent fundraising, which resulted in total savings of Rs 685 crore and enhanced the crisis-hit airline's financial stability and balance sheet, according to a spokesperson, reported the news agency IANS.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are pleased to announce the successful resolution of our dispute with Echelon Ireland Madison One Ltd, marking another significant milestone for SpiceJet.” 

He further emphasised that this resolution not only reaffirms the company’s dedication to financial responsibility but also empowers us to reinforce our fleet by acquiring two additional airframes. "This settlement not only underscores our commitment to financial prudence but also enables us to further fortify our fleet with the acquisition of two airframes," he added.

On February 28, SpiceJet announced the amicable resolution of its Rs 250 crore dispute with Celestial Aviation, resulting in savings of Rs 235 crore.

Subsequently, on March 5, SpiceJet disclosed the settlement terms with aircraft leasing firm Cross Ocean Partners, resolving a dispute of around Rs 93 crore. Under the agreement, the airline will acquire an airframe and an engine at no additional expense, enhancing its operational capacity.

In response to today's disclosure, SpiceJet's shares rose by 2.97 per cent to Rs 63.76 on the Bombay Stock Exchange (BSE). In addition, over the preceding six months, the airline operator's shares have surged by approximately 60 per cent. In contrast, the benchmark Nifty50 has recorded a gain of around 14 per cent over the same period.