SpiceJet makes part payment of dues to AAI

Budget carrier SpiceJet has made a part payment of its dues to the state-run Airports Authority of India and also signed an agreement with aircraft leasing firm BBAM to settle out of court the dispute over Boeing rentals.

"SpiceJet has paid a part payment of Rs 25 crore (Rs 250 million) to the Airports Authority of India towards the dues it had accumulated due to the cash crunch last year," sources told PTI in New Delhi on Tuesday.

The AAI received the part payment of around Rs 300 crore (Rs 3 billion) dues on Tuesday, they said.

Meanwhile, the airline said that aircraft leasing firm BBAM has agreed in-principle to settle out of court the dispute over aircraft rentals.

"SpiceJet has entered into an in-principle understanding with its five lessors managed by BBAM Aircraft Leasing and Finance with regard to five aircraft operated by the company," SpiceJet said in a regulatory filing on Wednesday.

Under the understanding, the lessors have agreed to suspend court proceedings, including winding these up, and the de-registration process of aircraft, subject to SpiceJet satisfying the terms of settlement and parties executing definitive agreements, the airline said.

SpiceJet was dragged to court by several aircraft leasing firms, including BBAM after it had failed to pay rentals for some of its Boeing 737 aircraft due to financial crunch last year.

A single judge bench of the high court had on March 19 directed the DGCA to de-register six Boeing 737 aircraft given to the carrier.

But on March 23, another of its lessors Wilmington Trust SP Services (Dublin) Ltd decided to withdraw the court proceedings and de-registration process of aircraft after the parties reached an agreement on the issue.

Currently, the budget carrier has a fleet of 32 aircraft, of which 27 are Boeing 737 and the rest Bombardier Q400s.

The airline plans to add seven more such planes between this month and May.