SpiceJet (SG, Delhi International) expects to induct seven leased aircraft and return three grounded aircraft to service by the end of November, according to an October 8 Bombay Stock Exchange (BSE) filing. The airline says it has signed agreements for the leased aircraft, with the full induction of all seven planes expected by November 15.
"Two of these leased aircraft have already arrived in India and are scheduled for immediate induction," the filing reads. "SpiceJet will also operationalise its grounded planes in phases, with the first three set to re‐enter service before the end of November."
ch-aviation research has identified the two recently arrived aircraft as 9H-TJC (msn 38012) and 9H-CXA (42804), both B737-800s supplied on wet-lease by Corendon Airlines Europe (XR, Malta International), which ferried into Delhi on October 7, and started revenue operations for SpiceJet on October 10.
“This addition is crucial as we continue to meet the growing demand for air travel while strengthening our operational capabilities," said SpiceJet managing director Ajay Singh.
Separately, in an October 9 BSE filing, SpiceJet announced it had settled a lease dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd - all BBAM-controlled special purpose vehicles. The filing says the "amicable settlement" fully resolves the dispute with an aggregate value of USD131.85 million. Under the settlement's terms, SpiceJet will pay USD22.5 million.
Last month, SpiceJet conducted a INR30 billion rupee (USD357.4 million) capital raising via a qualified institutional placement. Substantial portions of the monies raised will go towards settling lease disputes, reactivating grounded aircraft, and acquiring additional ones. ch-aviation fleets data reveals that 38 of SpiceJet's 58 aircraft are out of service.
“This landmark settlement with BBAM allows us to significantly reduce our liabilities and reinforces our efforts to emerge as a more robust airline," said Singh. "Together with the funds raised through our qualified institutional placement, we are well positioned to focus on growth, ungrounding our fleet, and expanding our services.”
In late September, SpiceJet settled its lease dispute with Engine Lease Finance Corporation. The dispute, which had an aggregate value of USD16.7 million, was settled for an undisclosed amount.
The Times of India reports that SpiceJet intends to reactivate all of its grounded aircraft within 12 - 24 months and wants to expand its fleet to 100 aircraft by 2026. The low-cost carrier has set aside INR4 billion (USD47.7 million) for spares, maintenance, and engineering to help with the reactivation program.
Meanwhile, in what amounts to a legal whack-a-mole, another lessor has lodged an insolvency petition against SpiceJet in the National Company Law Tribunal, India's specialist bankruptcy court. Legal records show Aviator ML 29641 Limited lodged its complaint in September. Aviator ML 29641 Limited is a leasing special purpose vehicle controlled by US-based Aviator Capital. They have one B737-800, VT-SGJ (msn 29641), placed at SpiceJet.
