SpiceJet and Celestial Aviation Settle $29.9 Million Dispute
The legal dispute between Indian budget airline SpiceJet and Celestial Aviation has finally come to an end, with the two parties reaching a settlement of $29.9 million (₹250 crore). The resolution was achieved through mutual negotiations and has been approved by the National Company Law Tribunal (NCLT).
This settlement marks a significant step forward for both SpiceJet and Celestial Aviation, as it allows them to avoid a prolonged legal battle and focus on their respective businesses. Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his satisfaction with the resolution, stating that it underscores their commitment to finding amicable solutions to complex challenges.
SpiceJet recently secured investments amounting to ₹1,060 crore through a preferential issue, with a portion of these funds being allocated towards settling past liabilities, including the dispute with Celestial Aviation. The airline has been facing insolvency proceedings from multiple leasing companies, including Celestial Aviation, Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd.
While the insolvency applications from Wilmington Trust SP Services (Dublin) and Willis Lease Finance have been rejected by the NCLT, Alterna Aircraft has filed a claim demanding the repayment of $11.1 million and £265,000. The legal battles between SpiceJet and its lessors highlight the challenges faced by the aviation industry, particularly in the current economic climate.
The resolution of the dispute with Celestial Aviation is a positive development for SpiceJet, allowing the airline to move forward and focus on revamping its fleet and driving its business growth. As the aviation sector continues to navigate through turbulent times, finding amicable solutions to financial disputes will be crucial for the industry’s recovery and sustainability.