SpiceJet said on Wednesday it has entered into an agreement with Canadian aircraft manufacturer De Havilland to settle all disputes related to the Q400 turboprop aircraft purchase agreement.
"All related proceedings before the UK court and execution proceedings before the Delhi High Court have been stayed and will be withdrawn upon compliance with the settlement terms," a statement from the airline read.
In 2017, SpiceJet had signed an agreement with De Havilland for the purchase of 25 Q400 aircraft.
Three years later, De Havilland had filed a case against SpiceJet in a United Kingdom (UK) court stating the budget airline paid and took delivery of five of the 25 aircraft but halted the pre-delivery payment for the remainder of them.
The UK court had in 2021 said De Havilland was entitled to recover USD 42.9 million from SpiceJet and terminate the aircraft purchase agreement.
The Canadian aircraft maker had then filed a case in Delhi High court to recover the USD 42.9 million award.
In a statement, SpiceJet said on Wednesday, "The company is pleased to announce that on December 13, 2021, it has entered into a settlement agreement with the aircraft manufacturer of DHC-8-400 aircraft (De Havilland Aircraft of Canada Limited) wherein the parties have agreed to settle all their disputes under and related to the aircraft purchase agreement and component solution agreement, subject to compliance with the terms of settlement."
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today