SpiceJet (SG, Delhi International) has settled its second lease dispute in as many weeks, telling the Bombay Stock Exchange on March 5 that it had come to terms with Cross Ocean Partners and resolved the USD11.2 million matter out of court.

“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," said Ajay Singh, the budget carrier's chairman and managing director.

Cross Ocean Partners was pursuing the LCC in the Delhi High Court following a June 2023 award in the UK High Court in the matter of VS MSN 36118 CAV Designated Activity Company vs. Spicejet Limited (case no: CL-2022-000479). VS MSN 36118 CAV is a Cross Ocean special purpose vehicle used to lease a B737-700 registered as VT-SLP (msn 36118) to the airline. However, the carrier started defaulting on monthly lease payments in 2020.

In London, the SPV successfully obtained payment orders for past-due lease payments and future lease payments (the initial lease term was 96 months, running through 2026) per the lease contract's terms. Cross Ocean Partners then turned to the Delhi High Court to enforce the orders.

"This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities," said Singh.

VT-SLP has remained at SpiceJet throughout the dispute and, according to FlightRadar24 ADS-B data, was operating scheduled flights until December 17, 2023. The aircraft is now stored at Delhi International. As part of the settlement, India's Economic Times newspaper reports that SpiceJet has secured an additional airframe and engine from the lessor.

Last week, SpiceJet settled out of court a USD29.9 million lease dispute with AerCap special purpose vehicle Celestial Aviation Services Limited (UK). That dispute concerned unpaid leases on nine aircraft.

The Economic Times also reports that India's specialist bankruptcy court, the National Company Law Tribunal (NCLT), has reserved its decision concerning an Aircastle insolvency petition against SpiceJet. The matter was mentioned before the court's Delhi bench on March 4. Aircastle has two petitions running at the NCLT, each concerning a specific B737 and claiming around INR500 million rupees (USD6 million) in unpaid leases. However, the carrier's counsel has argued against the maintainability of the separate petitions. The matter returns to the NCLT on April 22.

SpiceJet has recently enjoyed some success in the NCLT, defeating insolvency petitions lodged by Willis Lease Finance and Wilmington Trust SP Services (Dublin). In both cases its counsel argued against the maintainability of the petitions.