Happy days are again in for SpiceJet as the airline shares were in the green this morning. The SpiceJet shares rose by 3 pc in the morning just as the news of Irish lessor Aircastle withdrawing its insolvency case against the airline was out. The case has been pending before the National Company Law Tribunal (NCLT) for a while. At 10:10 am, shares of SpiceJet were trading at INR 62.90 on the NSE. With this, the stock has delivered around 15% gains in the past week

In an exchange filing, SpiceJet clarified that the airline and lessor have decided upon a mutual settlement. This marked a positive turn in the airline’s efforts to rebuild and strengthen its ties with its partners. 

Just last month the airline resolved a $23.39 million dispute with Aircastle and Dublin-based Wilmington Trust SP Services for $5 million. The dispute was resolved by amicable negotiations with an agreement on handling specific aircraft engines. 

As part of the settlement, all ongoing litigations and disputes between SpiceJet and the involved parties have been withdrawn from the respective forums.

SpiceJet is slowly but steadily resolving disputes with its partners, suppliers and lessors. Prior to this settlement, the airline amicably settled its dispute with lessors under Babcock & Brown Aircraft Management (BBAM) for $22.5 million. This was a notable reduction from the original claim of 131.85 million. Earlier this month, SpiceJet also settled its dispute with Export Development Canada for $22.5 million and gained the ownership of 13 Q400 aircraft. 

Overall, the last quarter of 2024 is turning out to be good for SpiceJet. It started with the airline gaining INR 3,000 crore in Qualified Institutional Placement (QIP) which provided a major financial boost to the low-cost carrier. Apart from the QIP, SpiceJet will also receive INR 736 crore from a previous funding round, strengthening its financial position a notch above its current position.