SpiceJet resolves Rs 413 crore dispute with Echelon Ireland Madison One; shares rise

SpiceJet shares rose on Thursday after the private sector airline said it had resolved a $49.8-million (Rs 413 crore) dispute with Echelon Ireland Madison One, resulting in substantial cost savings and further strengthening its balance sheet. The SpiceJet stock gained as much as Rs 5.6 per cent to Rs 65.4 apiece on BSE. 

The settlement with Echelon Ireland Madison One led to savings of $48 million (Rs 398 crore) and the acquisition of two airframes for SpiceJet, the airline said. 

It was the third major settlement for SpiceJet after raising funds recently.

The three successful settlements resulted in total savings of Rs 685 crore for the airline, further solidifying its financial stability as well as balance sheet.

“We are pleased to announce the successful resolution of our dispute with Echelon Ireland Madison One Ltd., marking another significant milestone for SpiceJet. This settlement not only underscores our commitment to financial prudence but also enables us to further fortify our fleet with the acquisition of two airframes," said Ajay Singh, Chairman and Managing Director, SpiceJet. 

On February 28, SpiceJet announced that it had mutually settled its $29.9 million (Rs 250 crore) dispute with Celestial Aviation resulting in savings of Rs 235 crore.

On March 5, it had reached settlement terms with aircraft leasing firm Cross Ocean Partners, resolving a dispute of about $11.2 million (Rs 93 crore).

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