SpiceJet, one of India’s prominent low-cost carriers, has finally brought closure to its long-running dispute with global investment bank Credit Suisse. After nearly ten years of legal battles and negotiations, the airline has completed a full and final settlement of $24 million (around ₹200 crore), ending a case that once threatened its operations.
The development is being viewed as a key step in SpiceJet’s ongoing turnaround efforts, as the airline struggles with mounting losses, grounded aircraft, and financial instability. But while this settlement brings relief from an old liability, the challenges facing the airline remain far from over.
A Decade-Long Legal Battle
The roots of the SpiceJet–Credit Suisse dispute go back to 2015, when the Swiss financial institution filed a case in the Madras High Court over unpaid dues. At the time, Credit Suisse claimed $41.77 million was owed to it, related to the supply of aircraft spare parts and maintenance services arranged through SR Technics.
The case dragged on for years, eventually reaching the Supreme Court of India in 2022. That same year, the two sides arrived at an agreement under which SpiceJet committed to pay $24 million as a full settlement against the original claim.
The airline, led by promoter Ajay Singh, completed this payment in 2025, officially bringing the dispute to an end after a decade of uncertainty.
SpiceJet’s Statement on the Settlement
Debojo Maharshi, Chief Business Officer of SpiceJet, described the completion of the settlement as an important milestone for the airline.
“This settlement not only brings closure to an old liability but also demonstrates our resolve and ability to meet commitments despite a challenging operating environment,” Maharshi said in a statement.
Industry analysts believe this move will help SpiceJet rebuild confidence among lessors, investors, and other financial stakeholders who have been wary of the airline’s liquidity problems.
Financial Challenges Continue
Even as SpiceJet closes the chapter on its long-standing legal tussle, its financial troubles remain significant.
- Revenue Decline: In Q1 FY26, SpiceJet’s revenue fell by 34% to ₹1,120 crore, compared to ₹1,708 crore in the same quarter of FY25.
- Net Loss: The airline reported a net loss of ₹234 crore in Q1 FY26, a sharp reversal from a net profit of ₹158 crore in the corresponding quarter last year.
- Operational Struggles: High operating costs, rising fuel expenses, and grounded aircraft continue to weigh heavily on SpiceJet’s balance sheet.
This financial stress has forced the airline to explore fundraising options, lease restructuring, and settlements with key creditors to stay afloat.
The Fleet Crisis – A Core Concern
One of the biggest challenges SpiceJet faces today is the non-operational status of a majority of its fleet.
- As of June 2025, the airline had a total of 56 aircraft, but only 21 were operational.
- Grounded aircraft alone cost the airline ₹118 crore in expenses during Q1 FY26, contributing significantly to its losses.
To address this, SpiceJet has outlined a fleet revival plan, aiming to return at least 10 grounded aircraft to service by April 2026. The airline expects 4–5 of these aircraft to be operational by early winter, a move intended to capture demand during the peak travel season.
SpiceJet’s Turnaround Plan
Despite its struggles, SpiceJet continues to push forward with strategic initiatives aimed at stabilizing operations and regaining market share.
Induction of New Aircraft
- SpiceJet has secured lease agreements for 10 Boeing 737 aircraft on a damp lease, set to join its fleet from October 2025.
- The airline is also in talks for additional narrow-body and wide-body aircraft that could be inducted between October and November 2025.
Debt & Liability Management
- Apart from the Credit Suisse settlement, SpiceJet has been working to settle dues with key lessors and creditors, an effort to rebuild trust and strengthen its financial base.
- The company is reportedly exploring fundraising options, including equity infusion, to stabilize liquidity.
Focus on Network Expansion
- SpiceJet is also working to expand its domestic and international routes, banking on increasing demand for air travel post-pandemic and during the festive and holiday seasons.
- By adding new aircraft and reviving grounded ones, the airline hopes to capture a bigger share of India’s fast-growing aviation market.
What Does This Mean for SpiceJet’s Future?
The completion of the $24 million settlement is undoubtedly a positive development for SpiceJet. It eliminates a decade-old liability that could have had serious legal and operational consequences if left unresolved.
However, the airline still faces an uphill task:
- Turning losses into profits.
- Bringing grounded aircraft back into service.
- Raising funds and maintaining investor confidence.
- Competing against stronger rivals like IndiGo, Air India, and Vistara.
Industry experts suggest that while the settlement strengthens SpiceJet’s credibility, the airline’s survival and growth will depend heavily on fleet expansion, operational efficiency, and consistent revenue improvement.
SpiceJet’s settlement with Credit Suisse marks the end of a decade-long dispute and demonstrates the airline’s commitment to resolving old financial liabilities. It is a much-needed win at a time when the airline is struggling with losses, grounded aircraft, and a shrinking market presence.
The focus now shifts to execution of its turnaround plan—ungrounding jets, inducting new aircraft, securing fresh funding, and rebuilding market confidence. If SpiceJet manages to deliver on these fronts, the settlement could become a turning point in its journey toward recovery.
Disclaimer : This article is for informational purposes only and is based on publicly available reports and statements. It should not be considered financial advice.
