SpiceJet Ltd has got a breather with the company reaching an in principle deal with its five lessors in connection with five aircraft operated by it.

This is the second such agreement with its lessors that the company had reached in recent days with regard to the aircraft operated by SpiceJet with the lessors consenting to withdrawal of court proceedings and deregistration of aircrafts that threatened to put its flight operations out of gear.

In a communication to the stock exchanges today, SpiceJet Limited said that it had reached an in-principle understanding with its five lessors managed by BBAM Aircraft Leasing and Finance with regard to five aircrafts operated by it.

According to the understanding reached, the lessors had consented to suspend court proceedings (including winding-up proceedings) and deregistration process of aircrafts subject to the airline satisfying the terms of settlement and parties executing definitive agreements.

SpiceJet Ltd had earlier on March 23 said it had reached a Settlement Agreement with its lessor Wilmington Trust SP Services (Dublin) Limited with respect to the aircraft operated it. It said the lessor has agreed to withdraw the court proceedings and deregistration process of aircraft subject to the company satisfying the terms of settlement.

The travails of SpiceJet began after the Delhi High Court last month ordered the Directorate General of Civil Aviation (DGCA) to deregister six of SpiceJet’s Boeing 737 planes after two lease agreements were terminated by leasing companies Awas and BOC Aviation.

The deregistration threatened to unsettle the flight schedule of SpiceJet which recently changed hands after the Marans offloaded their stake in favour of Ajay Singh and other investors. Subsequently, a bench of the Delhi High Court directed the industry regulator DGCA not to de-register the six leased planes till April 6 as the airline was seeking to reach a settlement with the aircraft leasing companies.

In a release issued on March 20, the company had said that the cases originated when it was in a financial crisis in December 2014, before change of ownership and the infusion of fresh funding. It said the `change of ownership and infusion of fresh funding’ had assured SpiceJet’s future.

As part of the revival plan, it was also planning to beef up its fleet and expected to add 8-9 Boeings starting in April to take the active Boeing fleet to 25-26 aircraft in the summer, in addition to the 15 Bombardier Q400 aircraft that are owned by it.

SpiceJet said it would strengthen its fleet in the later half of the year to take the Boeing fleet up to 34-35 aircraft by the year-end.

Shares of SpiceJet are up by 75 paise to Rs 22.45 on the BSE.

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