SpiceJet settles Rs 250-crore dispute with aircraft lessor Celestial Aviation

Spicejet reported 160 percent jump in its consolidated net profit at Rs 110 crore for the December quarter.

SpiceJet has settled a Rs 250-crore dispute with Celestial Aviation, a subsidiary of one of the largest aircraft lessor groups, through negotiations and has avoided the litigation route, according to a communication to the stock exchanges.

The matter is now scheduled to be withdrawn formally on March 1 and both parties have informed the National Company Law Tribunal (NCLT) bench about the settlement.

Two days ago, the airline told NCLT that the dispute with Celestial Aviation was "practically settled" and only formalities remained.

"With this resolution, we can now focus on revamping our fleet and driving our business forward. I am grateful for the support of our stakeholders, including our investors, as we navigate through this process," Ajay Singh, the chairman and managing director of the budget airline, said in a press statement.

The press statement further said that the airline recently secured investments of Rs 1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited, and part of this fund will be allocated towards settling past liabilities.

In October 2023, SpiceJet informed the tribunal that it was exploring the possibility of settlement with Celestial. In December 2023, SpiceJet informed the tribunal that they have made some payments to aircraft lessor Celestial Aviation. Celestial's counsel Nitin Sarin admitted to receiving the payment, though the airline missed some deadlines.

SpiceJet reported a 160 percent jump in its consolidated net profit to Rs 110 crore for the December quarter.