May 25 Budget carrier SpiceJet and Credit Suisse AG have signed and concluded the settlement and consent terms with regard to a pending dispute between the two parties, the airline has said in a statement.
Executed on May 23, the settlement and consent terms have also been filed before the Supreme Court of India for final orders. The settlement involves payment of a certain amount upfront and the balance over a mutually agreed timeline.
Credit Suisse had dragged SpiceJet to the Madras High Court last year after the airline failed to make payments of over $24 million to Swiss maintenance, repair and overhauling (MRO) service provider, SR Technics. Credit Suisse was mandated to receive the pending dues on behalf of SR Technics.
SpiceJet said it had already provided a bank guarantee of $5 million on the direction of the Madras High Court and there is no adverse financial liability on the company.
The settlement with Credit Suisse follows SpiceJet’s successful settlements and performances with De Havilland Aircraft of Canada Ltd (DHC), Boeing, CDB Aviation, BOC Aviation and Avolon.
“This provides an impetus to normalisation, growth and expansion of the airline,” SpiceJet’s statement said.
According to data from the Directorate-General of Civil Aviation, approximately 1.08 crore domestic passengers took to the skies in April, up 2 per cent on that in March, when the number was 1.06 crore.