SpiceJet settles with aircraft lessor Goshawk Aviation

SpiceJet has entered into a settlement with aircraft lessor Goshawk Aviation and its affiliated entities related to two Boeing 737 Max aircraft and one Boeing 737-800 NG aircraft, it said on Tuesday.

Goshawk Aviation is one of the main lessors of Max aircraft of SpiceJet, the airline said. “The settlement with Goshawk follows SpiceJet’s successful settlements with De Havilland Aircraft of Canada Limited, Credit Suisse, Boeing, CDB Aviation, BOC Aviation and Avolon,” it said.

SpiceJet and Goshawk have agreed to settle all their disputes under the aircraft lease agreements for three aircraft, it said. “The agreement, the terms of which are confidential, ends all litigation proceedings between the parties (SpiceJet and Goshawk). All proceedings, including before the UK court and execution proceedings before Delhi High Court will be withdrawn accordingly,” it noted.

SpiceJet has been making losses for the last four years. It incurred net losses of ₹ 316 crore, ₹ 934 crore and ₹ 998 crore in 2018-19, 2019-20 and 2020-21, respectively.

In the April-December period of 2021, the airline posted a net loss of ₹1,248 crore. The airline is yet to declare results for January-March period of 2022.

The Directorate General of Civil Aviation (DGCA) had on July 27 ordered SpiceJet to operate not more than 50% of its flights, which were approved for summer schedule, for eight weeks.

The order was issued after DGCA had on July 6 issued a show-cause notice to SpiceJet, following at least eight incidents of technical malfunction in its aircraft since June 19.

Meanwhile, the Supreme Court on Tuesday said it would consider a joint request for mediation of low-cost airline SpiceJet and media baron Kalanithi Maran and his Kal Airways for amicably settling all pending disputes between them including the row over the share-transfer issue.

A bench comprising Chief Justice N.V. Ramana and Justices J.K. Maheshwari and Hima Kohli was apprised by senior advocate Mukul Rohatgi, appearing for SpiceJet, that there were three pending issues between the low-cost airline and Maran and, of these, one has been settled on July 29.

Initially, Rohatgi sought four to six weeks to settle all issues between the parties. However, senior advocate Vikas Singh, representing Maran and his Kal Airways, suggested mediation between the parties at the Hyderabad mediation centre, which was also supported by SpiceJet through Rohatgi.

“We will see,” the bench said. At the outset, Rohatgi said, “There were three issues between us. One is the issue arising in this matter and there are other two issues that are not part of the present matter. Two issues are foreign to this matter and out of those, one has been settled on July 29. We have reached a settlement with the lender and the security will be released and so that part is over,” he said.