A UK court has ruled that SpiceJet must pay approximately $8 million to an aircraft engine lessor, Sunbird France 02 SAS, due to unpaid rent and maintenance accruals for three aircraft engines. The court found SpiceJet unable to defend the claim, which dates back to January 2022 for unpaid engine lease rentals and maintenance accruals from November 2020. Sunbird France 02 SAS repossessed all three engines between late 2022 and mid-2023 after issuing default notices in July 2022.
The legal pressure intensifies the financial challenges faced by SpiceJet, exacerbated by the grounding of the Boeing 737 MAX fleet and disruptions from the COVID-19 pandemic. Competitors like Akasa Air have been gaining market share at SpiceJet’s expense. Despite initially seeking legal counsel, SpiceJet failed to respond to the lessor’s claims, resulting in the court’s summary judgment. The airline is yet to officially comment on the ruling, as its financial viability remains a concern.
SpiceJet’s financial woes have been highlighted by increasing losses and a growing disparity between its liabilities and assets, raising doubts about its long-term sustainability. In a separate incident last month, a SpiceJet flight bound for Leh had to return to Delhi due to a technical issue shortly after takeoff. The Boeing 737 aircraft, operating flight SG121, safely landed back in Delhi after the crew detected the problem.
