NEW DELHI, April 9 (Reuters) – A UK court has ordered
India’s SpiceJet to pay about $8 million to an
aircraft engine lessor over unpaid rent and maintenance charges
for three engines, in the latest setback for the cash-strapped
airline.
London’s Commercial Court granted summary judgment on
Wednesday in favour of Sunbird France 02 SAS over the unpaid
rent and maintenance accruals, finding that SpiceJet had no
viable defence.
The ruling comes as SpiceJet remains under financial strain
following the Boeing 737 MAX grounding and COVID-19 pandemic,
and losing market share to rivals such as Akasa Air.
The unpaid rent dates from January 2022, while maintenance
accruals date back to November 2020. The lessor issued default
notices in July 2022 and repossessed all three engines between
late 2022 and mid-2023.
SpiceJet initially hired British solicitors but never filed
a defence or response to Sunbird’s application, the judgement
showed.
The airline did not respond to an email seeking comment.
Its auditors have warned of uncertainty over the airline’s
ability to continue as a going concern, citing mounting losses
and a gap between current liabilities and assets, according to
its latest results.