UK court orders SpiceJet to pay $8 million over unpaid engine dues

A UK court has ordered Indian airline SpiceJet to pay around $8 million to an aircraft engine lessor over unpaid rent and maintenance charges, in a fresh setback for the financially strained carrier.

According to Reuters, London’s Commercial Court granted summary judgment in favour of Sunbird France 02 SAS, ruling that SpiceJet had no viable defence in the case related to three leased engines.

Court finds no defence from airline

The dispute centres on unpaid rent dating back to January 2022 and maintenance accruals from November 2020, Reuters reported.

Sunbird issued default notices in July 2022 before repossessing the engines between late 2022 and mid-2023.

Court documents cited by Reuters show that SpiceJet had appointed British solicitors but failed to file any formal defence or response to the lessor’s application, leading the court to issue a summary judgment.

The airline did not respond to Reuters’ request for comment.

Financial strain deepens

The ruling comes at a time when SpiceJet continues to face mounting financial challenges.

The airline has been under pressure since the grounding of the Boeing 737 MAX fleet and the impact of the COVID-19 pandemic, while also losing market share to newer competitors such as Akasa Air.

Auditors have raised concerns about the airline’s ability to continue as a going concern, citing ongoing losses and a mismatch between current liabilities and assets, according to its latest financial results reported by Reuters.

Legal and operational pressures mount

The latest judgment adds to a series of legal and financial pressures facing the airline, particularly in relation to lease obligations and vendor payments.

Industry analysts note that such disputes with lessors can affect fleet availability and operational planning, especially for airlines already managing tight liquidity.

The repossession of engines linked to the case underscores the operational impact of prolonged payment delays.

Outlook remains uncertain

SpiceJet’s ability to stabilise its finances will depend on addressing outstanding liabilities and restoring investor confidence, even as competition intensifies in the Indian aviation market.

The court ruling highlights the challenges facing carriers operating under financial stress, where legal disputes can quickly translate into operational constraints.

For now, the airline faces the dual task of managing its balance sheet while maintaining service continuity in a highly competitive environment.