UK Court Orders SpiceJet to Pay $8 Million to Engine Lessor Over Unpaid Rent and Maintenance Claims

SpiceJet Ordered to Pay $8 Million to Aircraft Engine Lessor in UK Court

A UK court has dealt a significant blow to India's SpiceJet, ordering the cash-strapped airline to pay approximately $8 million to Sunbird France 02 SAS, an aircraft engine lessor, over unpaid rent and maintenance charges for three engines. The ruling, granted by London's Commercial Court on Wednesday in favour of Sunbird, marks another setback for SpiceJet as it continues to struggle financially.

The unpaid rent and maintenance accruals date back to January 2022 and November 2020, respectively. Sunbird issued default notices in July 2022, following which the lessor repossessed all three engines between late 2022 and mid-2023. SpiceJet's failure to file a defence or response to Sunbird's application was highlighted in the judgement.

SpiceJet's financial woes have been compounded by the Boeing 737 MAX grounding and the COVID-19 pandemic, leading to a decline in market share. The airline has been losing ground to rivals such as Akasa Air. The company's auditors have also expressed uncertainty over its ability to continue as a going concern, citing mounting losses and a gap between current liabilities and assets in its latest results.

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Note: The revenue figures are approximate and based on publicly available data.

SpiceJet has not commented on the ruling, with the airline failing to respond to an email seeking comment. The $8 million payment is the latest in a series of financial setbacks for the airline, which continues to face significant challenges in its bid to recover from its current financial difficulties.