SpiceJet Enters Into Settlement With Aircraft Lessor Goshawk Aviation

SpiceJet has been making losses for the last four years. It incurred net losses of Rs 998 crore in 2020-21.

Representational image.

(Photo: PTI)

SpiceJet on Tuesday, 16 August, announced that it 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.

Goshawk Aviation Limited is one of the main lessors of Max aircraft of SpiceJet, the airline's statement noted.

"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 mentioned.

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 All proceedings, including before the UK Court and Execution Proceedings before the Delhi High Court will be withdrawn accordingly," it noted.

SpiceJet has been making losses for the last four years. It incurred net losses of Rs 316 crore, Rs 934 crore and Rs 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 Rs 1,248 crore. The airline is yet to declare results for January-March period of 2022.

Aviation regulator DGCA had on 27 July ordered SpiceJet to operate not more than 50 percent of its flights, which were approved for summer schedule, for a period of eight weeks.

The order was issued by the Directorate General of Civil Aviation (DGCA) after it had on 6 July issued a show-cause notice to SpiceJet, following at least eight incidents of technical malfunction in its aircraft since 19 June.