Shares of SpiceJet were gaining on Tuesday after the troubled airline settled another legal spat with an aircraft lessor, sparking hopes for a turnaround in the carrier’s fortunes.

What Happened: SpiceJet resolved a $11.2 million (₹93 crore) dispute with aircraft leasing company Cross Ocean Partners, the firm said in a press release. This settlement is anticipated to result in substantial savings and operational benefits for the airline.

A joint statement made to the Delhi High Court on Tuesday confirmed that SpiceJet and Cross Ocean Partners have settled an ongoing execution petition. The resolution is set to save significant costs for SpiceJet and put an end to the dispute.

Further, the airline will acquire a transfer of an airframe and an engine at no additional cost, bolstering its operational capabilities.

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“We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation,” stated Ajay Singh, Chairman and Managing Director of SpiceJet.

Why It Matters: This settlement comes on the heels of a similar agreement that SpiceJet recently concluded with Celestial Aviation, a subsidiary of AerCap, valued at $29.9 million (₹248 crore). These settlements highlight SpiceJet’s commitment to resolving disputes and strengthening its financial position.

By avoiding prolonged litigation, the airline is not only saving on legal costs but also freeing up resources that can be better utilised for its operations and growth. The airline is currently working on a turnaround strategy as it looks to raise capital and service debt.

The airline also received an investment from the Abu Dhabi Investment Authority (ADIA), which recently acquired shares of SpiceJet from the open market.

Price Action: SpiceJet’s share price was up 2.8% at ₹64.33 in afternoon trade on Tuesday.

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