India’s SpiceJet settles with lessors for Boeing aircraft

BENGALURU (Reuters) – Indian low-cost carrier SpiceJet Ltd said on Tuesday it has entered into a settlement agreement with aircraft lessor Goshawk Aviation Ltd and its affiliates related to three Boeing (NYSE:BA) aircraft.

The airline said that the agreement – the terms of which are confidential – ends all litigation proceedings between the parties, adding that this will allow SpiceJet to add two more fuel-efficient Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft to its fleet.

Recently, SpiceJet has been in trouble with its lessors, Ireland-based Alterna Aircraft Ltd and United Arab Emirates aeronautics firm AWAS, who asked the Indian aviation regulator to de-register their planes.

Last week, Reuters reported lenders IDFC First Bank (NASDAQ:FRBA), Yes Bank and Indian Bank, had put their loans to the airline in the high-risk category.

SpiceJet, however, had rejected the claims.