Lessors Take Legal Action Against SpiceJet Over Lease Defaults

The Delhi High Court has summoned SpiceJet’s CEO and COO to explain the airline’s failure to comply with a May 2024 order to pay $6 million to lessor Team France 01 SAS. The summons requires personal appearances on January 16, 2025, rejecting SpiceJet’s request for virtual representation. Notably, SpiceJet’s CEO and COO roles are currently vacant, leaving uncertainty about who will respond.

Top shareholder and chairman Ajay Singh, who also serves as managing director, faces mounting pressure as the summons adds to the airline’s reputation struggles. Singh has been using recently raised capital to address SpiceJet’s growing list of financial and legal troubles.

Team France 01 SAS and Sunbird France 02 SAS initiated the case over unpaid debts for three aircraft engines. Despite previous court agreements for monthly repayments starting May 2024, SpiceJet defaulted again, leading to an order in September for the engines’ return. The airline appealed but lost.

Meanwhile, TWC Aviation Capital has also revived legal proceedings against SpiceJet, alleging missing parts from returned aircraft and engines. TWC claims 16 parts were removed from one aircraft and 29 from another, prompting accusations that SpiceJet used these parts on other planes.

The Delhi High Court judges called SpiceJet’s actions “shocking” and are considering contempt charges. The case will be heard again on January 14, 2025. These developments highlight ongoing tensions as lessors seek accountability from SpiceJet over repeated defaults and operational irregularities.

Related News : https://airguide.info/?s=Airline

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com