Agreement with BBAM to settle rental dispute out of court:SpiceJet

Budget carrier SpiceJet today said aircraft leasing firm BBAM has agreed in-principle to settle out of court the dispute over aircraft rentals and not to pursue its application to the aviation regulator for de-registration of five Boeing planes.

"SpiceJet has entered into an in-principle understanding with its five lessors managed by BBAM Aircraft leasing and Finance with regard to five aircraft operated by the company," SpiceJet said in a regulatory filing today.

Under the understanding, the lessors have agreed to suspend court proceedings, including winding these up, and the de-registration process of aircraft, subject to SpiceJet satisfying the terms of settlement and parties executing definitive agreements, the airline said.

SpiceJet was dragged to court by several aircraft leasing firms including BBAM after it had failed to pay rentals for some of its Boeing 737 aircraft due to financial crunch last year.

Currently, the budget carrier has a fleet of 32 aircraft, of which 27 are Boeing 737 and the rest Bombardier Q400s. The airline plans to add seven more Boeing 737 aircraft to its fleet by May.