Why SpiceJet Shares Are Surging By 4% Today

SpiceJet shares were on the up on Thursday after the private carrier announced it had resolved its ₹413 crore dispute with Echelon Ireland Madison One, leading to savings of approximately ₹398 crore and the acquisition of two airframes as part of the agreement.

What Happened: Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his satisfaction with the resolution, emphasizing its importance as a significant milestone for the airline. He highlighted that the settlement reflects the company’s dedication to financial sensibility and strengthens its fleet by adding two airframes.

On March 5, SpiceJet revealed a settlement of a dispute worth around ₹93 crore with Cross Ocean Partners, an aircraft leasing firm. The airline stated that this agreement would allow it to gain an airframe and engine at no extra cost.

See also: Why Suzlon Share Price Surged Up 8% From Day’s Low

Furthermore, SpiceJet previously finalized a settlement with Celestial Aviation, a subsidiary of AerCap, resolving a dispute valued at approximately ₹250 crore.

SpiceJet said that these three major settlements had collectively resulted in total savings of ₹685 crore. The company emphasized that these successful agreements have significantly bolstered SpiceJet’s financial stability and improved its balance sheet.

Price Action: SpiceJet shares were up 3.68% at ₹64.20 on Thursday shortly after the news broke.

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