SpiceJet, an Indian airline headquartered in Delhi, has reached a settlement with Willis Lease Finance, a global aircraft leasing company based in the United States, resolving a long-standing lease dispute. As a result, Willis Lease Finance has withdrawn its insolvency appeal against the airline. The settlement, finalized on March 27, 2025, is expected to contribute to significant financial savings for SpiceJet.
SpiceJet, a low-cost airline based in Delhi, India, has reached a settlement with Willis Lease Finance, a global aircraft leasing company headquartered in the United States. This resolution has led Willis Lease Finance to withdraw its insolvency appeal against SpiceJet, ending a prolonged legal dispute over outstanding lease payments.
According to court documents, the settlement was officially filed with the National Company Law Appellate Tribunal (NCLAT) on February 18, 2025. Justice Ashok Bhushan subsequently ordered the closure of the appeal on March 10, with the case being fully disposed of on March 27.
This successful settlement with Willis Lease reflects the positive impact of our financial restructuring strategy. The qualified institutional placement and subsequent promoter funding have strengthened our ability to resolve long-standing disputes, enhance financial stability, and drive operational growth.”
Ajay Singh, SpiceJet’s Chairman and Managing Director
The airline also mentioned that its improved financial standing would enable it to settle additional claims from other lessors.
Willis Lease Finance originally filed for SpiceJet’s insolvency in 2023 due to unpaid lease dues for 13 aircraft engines, amounting to approximately $11 million USD. However, the National Company Law Tribunal (NCLT) rejected the petition in December 2023 due to procedural reasons. The lessor then escalated the case by appealing to the NCLAT in April 2024.
While this settlement marks a positive step for SpiceJet, the airline still faces multiple ongoing bankruptcy petitions from other lessors. However, it is actively working towards settling disputes and improving its financial health.
