UK Court Orders SpiceJet to Pay $8 Million Over Engine Lease Dues
A UK court has directed SpiceJet to pay approximately $8 million to aircraft engine lessor Sunbird France 02 SAS over unpaid rent and maintenance charges linked to three engines. The ruling was issued by the London Commercial Court, which granted summary judgment in favor of the lessor, stating that the airline had no viable defense in the case.
The dispute stems from unpaid lease rent dating back to January 2022 and maintenance accruals going as far back as November 2020. Sunbird issued default notices in July 2022 and subsequently repossessed all three engines between late 2022 and mid-2023. Although SpiceJet initially engaged British solicitors, it failed to file any formal defense or response to the lessor’s claims, according to the court judgment.
The ruling adds to the mounting challenges faced by SpiceJet, which has been grappling with financial strain following the grounding of the Boeing 737 MAX and the impact of the COVID-19 pandemic. The airline has also been losing market share to competitors such as Akasa Air. Auditors have raised concerns about its ability to continue as a going concern, citing growing losses and a widening gap between liabilities and assets.
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