SpiceJet Settles Debt Disputes, Plans Fleet Expansion by 2026

SpiceJet (SG, Delhi International) has resolved two additional debt-related lawsuits, marking progress in its financial recovery. The low-cost carrier settled cases with Cross Ocean Partners’ special purpose vehicle, VS MSN 36118 Designated Activity Company (DAC), and Horizon Aircraft Finance SPV, Horizon Aviation 1 Limited.

Delhi High Court records reveal that on October 29, 2024, Horizon Aircraft Finance confirmed receiving full payment, resolving the USD131.85 million dispute. SpiceJet paid USD22.5 million as part of the settlement. On November 14, the court was informed that the dispute with Cross Ocean Partners was also settled, with an executed agreement pending submission. This case involved a leased Boeing 737-700 (VT-SLP) for which SpiceJet defaulted on payments starting in 2020.

SpiceJet Managing Director Ajay Singh shared an optimistic outlook in the company’s FY 2023-24 Annual Report, released on December 7. He highlighted significant improvements in the airline’s financial position, bolstered by a INR30 billion (USD354 million) capital raise in September and INR7.36 billion (USD86.7 million) from a prior funding round.

Singh outlined plans to allocate INR8 billion (USD94.5 million) to unground and upgrade the airline’s fleet. He expressed confidence that by 2026, SpiceJet would operate a 100-aircraft fleet. “We have cleared pending GST and TDS dues and are focused on finalizing key settlements,” Singh stated, emphasizing the airline’s renewed commitment to restructuring and growth.

The carrier has also recently settled disputes with other major creditors, including Aircastle, Export Development Canada, Engine Lease Finance Corporation, and Wilmington Trust SP Services, among others.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com