Daijiworld Media Network - London
London, Apr 9: Budget airline SpiceJet has been directed by a UK court to pay approximately $8 million to an aircraft engine lessor, adding to the financial challenges faced by the carrier.
London’s Commercial Court delivered a summary judgment in favour of Sunbird France 02 SAS, citing unpaid lease rentals and maintenance-related dues linked to three aircraft engines. The court observed that SpiceJet had no substantial grounds to contest the claim.
The case stems from non-payment of engine lease rentals dating back to January 2022, along with maintenance accruals pending since November 2020. Records show that the lessor had issued default notices in July 2022 and subsequently repossessed the engines between late 2022 and mid-2023.
This ruling comes at a time when SpiceJet continues to face financial stress, exacerbated by earlier setbacks such as the grounding of its Boeing 737 MAX fleet and the operational disruptions caused by the COVID-19 pandemic. The airline has also been under competitive pressure from newer entrants like Akasa Air, leading to a gradual erosion of its market share.
Court filings indicate that although SpiceJet had initially appointed legal representation in the UK, it did not submit a formal defence or respond to the lessor’s application, resulting in the court granting summary judgment.
The airline has not yet issued an official response to the ruling. Meanwhile, concerns over its financial stability persist, with auditors previously highlighting doubts about its ability to sustain operations. Recent financial disclosures point to increasing losses and a widening gap between liabilities and assets.
In a separate incident last month, a SpiceJet flight bound for Leh with around 150 passengers returned to Delhi shortly after takeoff due to a technical issue. The Boeing 737 aircraft, operating flight SG121 on February 24, turned back as a precaution after the crew detected a possible malfunction. The airline later confirmed the safe return of the aircraft.