Indian airline SpiceJet gives lessors shares to clear $28m dues

Indian low-cost carrier SpiceJet on Monday said it allotted over 48m shares to nine aircraft lessors to clear outstanding dues worth 2.31b rupees (nearly $28m), as the troubled airline looks to return to full operations. The carrier's shareholders had on Thursday passed a number of resolutions, including a 25b rupees fundraise and a preferential issue of shares to lessors to clear outstanding dues. SpiceJet has been scrambling to raise funds and restore operations for about a fourth of its fleet that has been grounded amid fierce competition in the sector. The fund crunch and grounded fleet has eroded SpiceJet's market share to 4.2% as of July – lower than that of new entrant Akasa, which only began commercial operations in August 2022. SpiceJet, which in February converted around $100m in dues to aircraft lessor Carlyle Aviation into equity and debentures, still finds itself in legal battles with other lessors over dues. Moreover, two weeks back, an Indian court ordered the airline to pay $12m by Sept. 10 to former owner Kalanithi Maran over money owed. Two months back, SpiceJet's top shareholder and managing director, Ajay Singh, said he would infuse 5b rupees into the company.<br/>