SpiceJet Appeals Delhi Court Ruling on Aerocare
SpiceJet (SG), the prominent low-cost carrier based at Delhi International Airport, has filed an appeal against a September 2024 ruling by the Delhi High Court. The court had previously determined that SpiceJet had fraudulently and illegally terminated the services of specialist Hajj operator Aerocare Aviation Services Pvt. Ltd.
The legal dispute centers around SpiceJet’s collaboration with Aerocare and its affiliated entities in developing Hajj operations over the past decade. According to the initial judgment, SpiceJet abruptly ended its contract with Aerocare, subsequently tendering for and securing the rights to operate Hajj flights independently. The court alleged that SpiceJet relied on proprietary knowledge and specialized expertise acquired from Aerocare to manage the highly specialized Hajj flights, thereby engaging in fraudulent and illegal termination practices.
In December 2024, the Delhi High Court issued an order staying the execution of its September judgment. This stay is contingent upon SpiceJet making a decretal payment of INR120 million (approximately USD1.41 million) into a specified escrow account. The original ruling had awarded Aerocare INR317 million (around USD3.7 million) in damages, underscoring the court’s stance on the unlawful termination of the specialist operator.
SpiceJet, however, has challenged the findings, arguing that the termination was justified and that the initial judgment overlooked significant evidence, including sworn statements from material witnesses. The airline maintains that its actions were within legal and contractual boundaries and disputes the characterization of the termination as fraudulent and illegal.
Despite the ongoing legal proceedings, SpiceJet has continued to advance its Hajj flight operations. Earlier this month, the airline announced that it had secured the rights to operate Hajj flights in 2025 from key cities including Kolkata, Guwahati, Gaya, and Srinagar. SpiceJet plans to transport approximately 15,500 pilgrims across more than 100 flights, projecting a revenue generation of INR1.85 billion (USD21.8 million) from these operations. The airline has been operating Hajj flights since 2019, highlighting them as a significant revenue stream and a testament to its expanding service portfolio.
The outcome of SpiceJet’s appeal remains pivotal not only for the airline but also for the broader aviation sector involved in specialized charter operations. A favorable ruling could set a precedent for how airlines manage partnerships with specialist operators, particularly in niche markets like Hajj flights. Conversely, an unfavorable decision may compel SpiceJet to comply with the original judgment, potentially affecting its financial standing and future contractual engagements.
As the case progresses, industry stakeholders are closely monitoring the developments, recognizing the implications it holds for airline partnerships, contractual obligations, and the management of specialized aviation services. SpiceJet’s ability to navigate this legal challenge while continuing to expand its Hajj operations will be crucial in maintaining its market position and financial health.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com