SPICEJET: 6% price gains after agreement over the billion dollar dispute

SPICEJET: 6% price gains after agreement over the billion dollar dispute

on Wednesday, October 9, 2024, the SPICEJET share price rose by 6%after the airline had a dispute worth 1.108 Crore RS (about 132 million USD) with the aircraft rental Babcock & Brown Aircraft Management (BBAM).

The conflict concerned Spicejet and three leasing companies that are managed under BBAM: Horizon Aviation 1 LTD, Horizon II Aviation 3 LTD and Horizon III Aviation 2 Ltd. Spicejet announced that the long -lasting dispute with an amount of USD 22.5 million was enclosed.

previous disputes and financial stability

This decision comes at a time when Spicejet has taken further steps to improve its financial stability. The airline recently collected 3,000 crore RS through a qualified institutional placement (QIP). This is a method of creating capital of institutional investors, what the airline should help to work more efficiently and to consolidate their financial situation.

In addition, Spicejet has solved another dispute with the Engine Lease Finance Corporation (ElfC) over 16.7 million, which further strengthens the company in its financial position. It seems that the Spicejet aviation market is now more stable after some significant obstacles have been cleared out.

at noon on October 9, 2024, at 1:43 p.m., the SPICEJET shares at the National Stock Exchange (NSE) noted an increase from 4.78 % to 65.80 RS per share. This growth is perceived as a direct result of the successful agreement on the pilot leasing attacks that give the company more confidence in the market.

Details on the current developments and disputes are crucial for understanding the Spicejet financial landscape, which, despite the challenges in the aviation sector, is apparently on a positive course.