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SpiceJet settles agreement with aircraft lessor Goshawk Aviation

SpiceJet settles agreement with aircraft lessor Goshawk Aviation

SpiceJet settles agreement with aircraft lessor Goshawk Aviation
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By CNBCTV18.com Aug 16, 2022 1:01 PM IST (Updated)

The settlement agreement between SpiceJet and aircraft lessor Goshawk Aviation ended all litigation proceedings between the parties. All proceedings before UK court and the Delhi High Court will now be withdrawn.

SpiceJet said on Tuesday it had entered an agreement with aircraft lessor Goshawk Aviation Ltd and its affiliated leasing entities — Wilmington Trust SP Services Ltd, Sabarmati Aviation Leasing Ltd, and Falgu Aviation Leasing Ltd — to settle all disputes related to the lease of two Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft.

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The settlement agreement will allow the entry of two more fuel-efficient Boeing 737 MAX aircraft into the SpiceJet fleet, news agency ANI reported.
The settlement agreement ended all litigation proceedings between the parties. All proceedings before a UK court and the Delhi High Court will be withdrawn.
"The parties have agreed to settle all their disputes under and related to the aircraft lease agreements for three aircraft. The agreement, the terms of which are confidential, ends all litigation proceedings between the parties," the airline said in a statement.
Meanwhile, SpiceJet promoter Ajay Singh is reportedly mulling the possibility of a partial stake sale in the airline. Singh holds a 60 percent stake in the airline and said the company is in discussions with investors to secure financing.
What's the SpiceJet-Goshawk dispute
According to reports, Goshawk and its trustees had sued SpiceJet for $16.2 million, which the airline has been unable to pay.
Goshawk and its trustee had leased three planes to SpiceJet — one B737-800 and two B737-MAX8s. The issue reportedly started when travel restrictions began, and Boeing MAX8s were grounded in the wake of the COVID-19 pandemic.
The lessors approached the Delhi High Court when SpiceJet had decided to spin off the assets. They wanted to stop the transfer until the lease dues were paid, LiveMint reported.
Other disputes
SpiceJet has also been courting trouble from other lessors, including Ireland-based Alterna Aircraft Ltd and United Arab Emirates aeronautics firm AWAS. The lessors had asked the Directorate General of Civil Aviation (DGCA) to de-register their planes.
As per a Moneycontrol report, the lessors had put in Irrevocable Deregistration and Export Request Authorisation (IDERA) requests for deregistering some planes. IDERA request is filed by lessors when negotiations with the airline regarding payment of dues fail.
Last year, SpiceJet said it had entered into a settlement agreement with Boeing Co. The Chicago-headquartered company had agreed to provide certain accommodations and settle the outstanding claims related to the grounding of 737 Max aircraft and its return to service.
SpiceJet vs Marans
In another development, sources told CNBC-TV18 that the airline has said to have resolved one of two issues of dispute with former promoter Maran.
SpiceJet has sought five weeks to conclude settlement talks. Marans have pitched for SC to direct mediation between the two sides to resolve the long-drawn issue, and SpiceJet has agreed to this, proposing a retired judge to mediate, the sources said.
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