UK Court Orders SpiceJet to Pay $8 Million in Engine Lease Dispute

In a significant legal setback, a UK court has ordered SpiceJet to pay approximately $8 million to engine lessor Sunbird France 02 SAS over unpaid rent and maintenance dues linked to three aircraft engines. The ruling was delivered by London’s Commercial Court, which granted summary judgment in favour of the lessor, stating that the airline had no viable defence in the case.

The dispute relates to unpaid lease rentals dating back to January 2022 and maintenance accruals from November 2020. Default notices were issued in July 2022, followed by the repossession of the engines between late 2022 and mid-2023.

The development further intensifies financial pressure on SpiceJet, which has been grappling with liquidity challenges, pandemic aftershocks, and the prolonged impact of the Boeing 737 MAX grounding.

Auditors have already raised concerns over the airline’s ability to continue as a going concern, citing mounting losses and a widening gap between liabilities and assets.