UK Court Orders SpiceJet to Pay $8 Million to Lessor

A court in the United Kingdom has ordered the airline SPICEJET LTD to pay approximately $8 million to an aircraft engine lessor following a dispute over unpaid rent and maintenance. The judgment, issued by London’s Commercial Court, favored Sunbird France 02 SAS after finding that the carrier had no viable defense against the claims. The court's decision involves three engines for which rent has been outstanding since January 2022 and maintenance accruals since November 2020. The lessor had previously issued default notices in July 2022 and repossessed the engines between late 2022 and mid-2023. This legal blow comes as the airline, headquartered in India, faces ongoing financial challenges. The grounding of the BOEING CO/THE 737 MAX fleet and the impact of the COVID-19 pandemic have significantly strained the company's operations, leading to a loss of market share to competitors such as Akasa Air. Although the airline initially engaged legal counsel, it ultimately failed to file a defense or respond to the lessor's application. Auditors have recently highlighted concerns regarding the company's ability to continue as a going concern, noting persistent losses and a significant gap between its current assets and liabilities. The airline did not immediately respond to requests for comment.