InvestorQ : What is the latest on the dispute between SpiceJet and its aircraft lessor, which wanted to sue SpiceJet for instalment defaults?
sara Kunju made post

What is the latest on the dispute between SpiceJet and its aircraft lessor, which wanted to sue SpiceJet for instalment defaults?

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Mary Joseph answered.
3 months ago
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At the peak of the pandemic, the aircraft lessor Avolon had threatened to sue SpiceJet and push them towards bankruptcy for default on aircraft rentals. However, a UK court had nixed the proposal as it would have pushed SpiceJet into a financial crisis and Avolon may have had to write off the entire amount due as a loss. Hence the court had rejected the plea by Avolon to proceed against SpiceJet. However, that now appears to be settled.

SpiceJet has agreed to a settlement deal with its aircraft lessor, Avolon. This paves the way for the highly controversial 737 Max Jets of Boeing to return to service. SpiceJet has one of the largest fleets of 737 Max aircraft and that has played a key role in the growth of SpiceJet over the years. With the Boeing 737 Max likely to be back in action soon, there is some breathing room for Avolon also and they have agreed for a settlement with SpiceJet.

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