SpiceJet settles ₹1,100 crore dispute with Babcock & Brown

SpiceJet has settled its $131.85 million (around Rs 1,107 crore) dispute with its lessors—Horizon Aviation 1 Ltd, Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd—managed by Babcock & Brown Aircraft Management (BBAM), for $22.5 million. The airline, in a stock exchange filing, stated that this resolution marks a major step towards enhanced financial stability and operational efficiency.

This settlement follows SpiceJet’s recent agreement with Engine Lease Finance Corporation (ELFC) over a $16.7 million claim on September 24. Additionally, the airline raised Rs 3,000 crore last month through Qualified Institutional Placement (QIP).

Ajay Singh, SpiceJet’s Chairman and Managing Director, said the BBAM settlement significantly reduces liabilities and strengthens the airline's position to focus on growth, fleet reactivation, and service expansion. SpiceJet also announced plans to induct 10 aircraft by November, with seven leased planes and three previously grounded ones. The airline has signed agreements for the leased planes, two of which are already in India and ready for induction.

Despite these developments, SpiceJet reported a nearly 20% year-on-year decline in net profit for Q1 FY2025, posting Rs 158.2 crore, down from Rs 197.6 crore in the same quarter last year. Revenue from operations also dropped 15% to Rs 1,708 crore compared to Rs 2,003 crore in the previous year’s corresponding period.