New Delhi: Budget airline SpiceJet has successfully reached an amicable settlement with Genesis, resolving a long-standing dispute valued at over $16 million. As part of the agreement, SpiceJet will pay Genesis $6 million in cash, while the lessor will acquire $4 million in SpiceJet equity at a price of Rs 100 per share, said a company statement.
“The settlement is a significant milestone for the airline, providing crucial financial relief and reinforcing its commitment to restoring long-term growth and stability. The deal also offers SpiceJet substantial savings, further strengthening its position in the competitive aviation sector,” it added.
In a joint statement, both parties confirmed that the settlement terms would result in the withdrawal of all ongoing litigations and disputes related to the matter. This move is expected to ease SpiceJet’s legal liabilities and pave the way for smoother operations in the future.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressing satisfaction with the resolution commented, “This settlement marks another crucial step in our journey toward financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet”.
The settlement with Genesis is the latest in a series of successful resolutions with other lessors. SpiceJet has previously reached similar agreements with companies including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Limited, and Export Development Canada. These negotiations have played an important role in reducing the airline’s outstanding financial obligations.
This latest agreement follows a landmark deal in September 2024, when Carlyle Aviation agreed to convert $30 million of lease arrears into SpiceJet equity at INR 100 per share. The deal signaled growing confidence from stakeholders in SpiceJet’s financial and operational recovery.
SpiceJet’s recovery has been further validated by Acuité Ratings & Research, which recently upgraded the airline’s credit rating by four notches, reflecting the company’s progress in overcoming financial challenges and its improved outlook in the aviation market.
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