SpiceJet says reached settlement on Rs 413-crore dispute with Echelon Ireland Madison One

New Delhi: SpiceJet on Thursday said it has settled a dispute involving Rs 413 crore with aircraft leasing firm Echelon Ireland Madison One Ltd, making it the third dispute settlement to be announced by the crisis-hit carrier in less than two weeks.

The latest settlement will result in savings of USD 48 million (Rs 398 crore), the airline said in a statement.

As part of the settlement of the Rs 413-crore dispute, SpiceJet will acquire two airframes.

Generally, an airframe is an aircraft without engines.

The airline, which is facing multiple headwinds and is in the process of raising funds, is acquiring a total of three airframes through the three dispute settlements. The airframes are of Boeing 737 NG planes.

"These successful settlements have resulted in total savings of Rs 685 crore for the airline," the statement said.

On March 5, the airline announced a settlement with aircraft leasing firm Cross Ocean Partners with respect to a dispute of about USD 11.2 million (Rs 93 crore). As part of the arrangement, the airline will get an airframe and an engine.

Earlier, on February 28, SpiceJet said it has settled the USD 29.9-million (Rs 250 crore) dispute with Celestial Aviation.

On Thursday, shares of the airline jumped 3.52 per cent to Rs 64.10 apiece in the morning trade on the BSE.