SpiceJet has resolved its dispute with Engine Lease Finance Corporation (ELFC) on September 24, 2024, after successfully fundraising for new aircraft.
The Irish-based lessor had initially claimed $16.7 million with the dispute spawning from the Indian airline failing to pay fees and interest for eight engines on lease.
The settlement was for an undisclosed amount, though, the airline said it was "lower than the initial claim", the company said in a filing on the Bombay Stock Exchange (BSE).
"We are pleased to have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate," said SpiceJet chairman and managing director Ajay Singh in the filing. "This agreement not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion."
The settlement comes only days after it closed its qualified institutional placement (QIP) on September 18, 2024.
SpiceJet said in a stock filing on September 23, 2024, the QIP raised INR 3,000 crore: equivalent to around $359 million. The company added that the QIP was "significantly oversubscribed" by investors.
" The strong response from investors and institutions is a testament to their faith in SpiceJet’s potential to rapidly scale and become a formidable player in India’s burgeoning aviation market," Singh commented in the filing. "This fundraise marks a pivotal moment for SpiceJet as we look to scale new heights in the aviation industry."
The filing said the fundraising will be "instrumental" in the airline acquiring new aircraft, as well as to further expand into new markets and invest in technologies.
Singh told Indian outlet The Economic Times that with the fundraising, it seeks to have a fleet of 40 by March next year before adding another 40 in 2026.
In the interview, he added: "We have all the infrastructure ready to become a 100-strong fleet again… We have the airport slots, international traffic rights, pilots and crew, as well as the maintenance infrastructure."
In addition to the money raised, the company will also receive INR 736 crore ($88 million) from the previous funding round.
The QIP, which had opened on September 16, 2024, had attracted investors such as Goldman Sachs, Morgan Stanley Asia, BNP Paribas Financial Markets, Nomura Singapore, Tata Mutual Fund, Discovery Global Opportunity Ltd, Societe Generale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund and The Jupiter Global Fund.
SpiceJet operates a fleet of mostly 737s and also Q-400s.