October 9, 2024
New Delhi, India
SpiceJet’s stock
SpiceJet’s stock surged 6% on Wednesday following the announcement of an amicable settlement in a $132 million dispute with Babcock & Brown Aircraft Management (BBAM). The dispute, which involved SpiceJet and three lessors under BBAM’s management, was settled for $22.5 million, significantly reducing the airline’s liabilities.
Key Highlights:
- Settlement Details: The dispute, initially valued at $131.85 million, included three BBAM-managed lessors. SpiceJet resolved the issue for $22.5 million, pushing the airline’s stock 6.21% higher at ₹66.70 per share on the BSE.
- Financial Impact: This settlement comes a month after SpiceJet raised ₹3,000 crore through a QIP (Qualified Institutional Placement), aimed at boosting its financial stability. The resolution of this dispute and another recent $16.7 million settlement with Engine Lease Finance Corporation (ELFC) showcases the airline’s commitment to resolving financial matters and reinforcing investor confidence.
- Fleet Expansion: SpiceJet plans to expand its fleet by adding ten aircraft by the end of November, with the first induction set for October 10. This move helped push SpiceJet shares up 9.5% during intraday trading on Tuesday.
- Fleet Status: Currently, SpiceJet has 19 operational aircraft, while 36 planes remain grounded as of October 8, according to Planespotter.net.
Outlook:
SpiceJet’s recent dispute settlements and fleet expansion plan highlight the airline’s focus on growth and operational efficiency, positioning it for a stronger future. The airline’s Chairman, Ajay Singh, emphasized that these moves reinforce the company’s efforts to become a more robust airline and expand its services.
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