UK Court orders SpiceJet to pay $8 million to lessor in fresh financial blow

New Delhi: A UK court has ordered SpiceJet to pay around $8 million to an aircraft engine lessor in a fresh blow to the cash-strapped carrier.

In a ruling, London’s Commercial Court granted summary judgment in favour of Sunbird France 02 SAS over unpaid rent and maintenance accruals linked to three aircraft engines.

The court held that SpiceJet had no realistic prospect of defending the claim.

The dispute relates to unpaid engine lease rentals dating back to January 2022 and maintenance accruals from as early as November 2020.

According to the judgment, the lessor issued default notices in July 2022 before repossessing all three engines between late 2022 and mid-2023.

The development adds to the mounting pressures on SpiceJet, which has been grappling with financial strain following the grounding of the Boeing 737 MAX fleet and the severe disruption caused by the COVID-19 pandemic.

The airline has also been steadily losing market share to newer competitors such as Akasa Air.

Court documents revealed that while SpiceJet initially engaged British legal counsel, it failed to file any formal defence or respond to Sunbird’s application, leading to the summary judgment.

However, the airline did not officially respond on the ruling yet. SpiceJet’s financial health has been under scrutiny, with its auditors flagging concerns about its ability to continue as a going concern.

The latest financial results point to rising losses and a widening gap between its current liabilities and assets, raising further questions over its long-term sustainability.

Meanwhile, last month, a SpiceJet flight carrying around 150 passengers to Leh returned safely to Delhi Airport shortly after takeoff from the airport after experiencing a “technical issue”.

The Boeing 737 aircraft, operating flight SG121 from Delhi to Leh on February 24, turned back minutes after departure after the crew detected a possible technical issue.

“A SpiceJet flight operating from Delhi to Leh on February 24 returned to Delhi after experiencing a technical issue,” an airline spokesperson said.

IANS