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Travel Radar - Aviation News > News > Aviation > Aircraft > SpiceJet to appeal High Court engine lease ruling
AircraftAirlinesAirportsAviation

SpiceJet to appeal High Court engine lease ruling

Agatha Okolo
Last updated: 18 September 2024 11:28
By Agatha Okolo
3 Min Read
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Boeing 737-8AS
Boeing 737-8AS © Md Shaifuzzaman Ayon
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SpiceJet , plans to appeal Delhi High Court decision, that upheld an earlier ruling ordering the return of three aircraft engines to France 01 SAS and Sunbird France 02 SAS. The carrier will now take the matter to India’s Supreme Court.

Boeing 737-8AS
© Md Shaifuzzaman Ayon

Initial Ruling

As previously reported, the lessors Team and Sunbird France have been pursuing SpiceJet in courts over arrears for several years. The court last year was told that SpiceJet had not paid its bills for two years and owed USD12.9 million. After breaching new payment plans last month, a judge said it seemed the company was out of money.

The judge told SpiceJet’s legal counsel at the time that they’d been repeatedly giving undertakings to the court. He added that if they’re not in a position to pay, then their engines should be grounded.

Ajay Singh SpiceJet managing director in response, offered to pledge personal shares equivalent to USD2.5 million against the debt. The lessors rejected this offer, with their counsel telling the court his clients did not want shares with the company.

Boeing 737-8AS
Boeing 737-8AS © Md Shaifuzzaman Ayon

Current Ruling

Upholding the earlier ruling, a panel on September 11th dismissed SpiceJet’s appeal noting the airline’s history of ignoring orders.

The judgement reads.

“The fact that the financial condition of SpiceJet is weak is evident from its conduct and the stand taken on its behalf in court.” It added that. “Team France and Sunbird France could well end up both without its engines or the monies due under the engine lease agreements.”

Per the rulings, SpiceJet is required to stop using the engines, which could result in the grounding of more aircrafts. It is however appealing the matter to India’s Supreme Court. The supreme court has asked the High Court on September 12 to send a formal request for an urgent hearing. A SpiceJet spokesperson in a statement said this week’s ruling would have no impact on operations and that the airline was currently reviewing the court order. ch-aviation fleets data shows that 22 of SpiceJet’s 61 fleet are in service. Among that in-service number, five are wet-leased aircraft.

SpiceJet earlier this week, was looking to lease an additional ten B737 types before the Christmas/New Year peak. It is also attempting to raise USD385 million which, would be used to settle outstanding liabilities with a range of airframe and engine lessors.

Do you think the move to appeal by SpaceJet will yeald any positive results? Let us know your opinions in the comments!

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Agatha Okolo
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