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India’s SpiceJet settles with lessors for Boeing plane

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© Reuters. FILE PHOTO: A SpiceJet passenger Boeing 737-800 aircraft takes off from Sardar Vallabhbhai Patel international airport in Ahmedabad, India May 19, 2016. REUTERS/Amit Dave

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BENGALURU (Reuters) – Indian low-cost carrier SpiceJet Ltd said on Tuesday it has entered into a settlement agreement with aircraft lessor Goshawk Aviation Ltd and its affiliates related to three Boeing (NYSE:) aircraft.

The airline said that the agreement – the terms of which are confidential – ends all litigation proceedings between the parties, adding that this will allow SpiceJet to add two more fuel-efficient Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft to its fleet.

Recently, SpiceJet has been in trouble with its lessors, Ireland-based Alterna Aircraft Ltd and United Arab Emirates aeronautics firm AWAS, who asked the Indian aviation regulator to de-register their planes.

Last week, Reuters reported lenders IDFC First Bank (NASDAQ:), Yes Bank and Indian Bank, had put their loans to the airline in the high-risk category.

SpiceJet, however, had rejected the claims.

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