SpiceJet settles disputes with Canadian aircraft manufacturer De Havilland | Photo credit: PTI
SpiceJet announced Wednesday that it has reached an agreement with Canadian aircraft manufacturer De Havilland to settle all disputes related to the agreement to purchase the Q400 turboprop aircraft.
“All related proceedings before the UK court and enforcement proceedings before the Delhi High Court have been stayed and will be withdrawn upon compliance with the terms of the settlement,” said a statement from the airline.
In 2017, SpiceJet signed an agreement with De Havilland for the purchase of 25 Q400 aircraft.
Three years later, De Havilland filed a lawsuit against SpiceJet in a United Kingdom (UK) court, saying the low-cost airline paid for and took delivery of five of the 25 planes, but withdrew payment. before delivery for the rest of them.
The UK court had said in 2021 that De Havilland was entitled to recover $ 42.9 million from SpiceJet and terminate the aircraft purchase contract.
The Canadian aircraft manufacturer then filed a complaint with the Delhi High Court to recover the US $ 42.9 million.
In a statement, SpiceJet said on Wednesday, “The company is pleased to announce that on December 13, 2021, it entered into a settlement agreement with the aircraft manufacturer DHC-8-400 (De Havilland Aircraft of Canada Limited ) in which the parties have agreed to resolve all their disputes under and relating to the Aircraft Purchase Agreement and the Component Solution Agreement, subject to compliance with the terms of the settlement.
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