SpiceJet Enters Into Settlement Agreement With Boeing 737 MAX Lessor Goshawk Aviation

Goshawk Aviation is one of the main lessors of MAX aircraft of SpiceJet

SpiceJet is now looking to expand its fleet after the Directorate General of Civil Aviation approved the aircraft to fly last August.

Source : Getty

Low-cost carrier SpiceJet Ltd on Tuesday said that it has entered into a settlement agreement with aircraft lessor Goshawk Aviation Ltd and its affiliates related to three Boeing aircraft, Reuters reported.

According to news report, SpiceJet has settled a deal with Goshawk Aviation and its affiliated leasing entities Wilmington Trust SP Services (Dublin), Sabarmati Aviation Leasing, and Falgu Aviation Leasing related to two Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft.

Goshawk Aviation is one of the main lessors of MAX aircraft of SpiceJet. The settlement with Goshawk follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada Limited, Credit Suisse, Boeing, CDB Aviation, BOC Aviation, and Avolon.

The airline said that the deal, the terms of which are confidential, ends all litigation proceedings between the parties. It said that this will allow the airline to add two more fuel-efficient Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft to its fleet.

SpiceJet is now looking to expand its fleet after the Directorate General of Civil Aviation (DGCA) approved the aircraft to fly last August.

Recently, the airline has been in trouble with its lessors, Ireland-based Alterna Aircraft Ltd and United Arab Emirates aeronautics firm AWAS, who asked the Indian aviation regulator to de-register their planes.

Last week, its lenders IDFC First Bank, YES Bank, and Indian Bank, had also put their loans to the airline in the high-risk category. SpiceJet, however, had rejected the claims.

Ajay Singh, promoter of SpiceJet, is exploring the possibility of a partial stake sale. ANI reported that the airline continues to be in talks with several investors to secure sustainable financing and will make appropriate disclosures in accordance with applicable regulations.

Currently, Ajay Singh holds a majority 60 per cent in SpiceJet.

SpiceJet has been under the spotlight after a slew of incidents related to technical snags on its flights.

Shares of SpiceJet were trading 1.96 per cent at Rs 46.75 apiece on the BSE on Tuesday.