A UK Commercial Court has directed India’s SpiceJet to pay approximately $8 million to aircraft engine lessor Sunbird France 02 SAS due to unpaid rent and maintenance charges related to three engines. The court issued a summary judgment on Wednesday, concluding that SpiceJet had no valid defense against the claims.
This decision marks another financial blow to the cash-strapped airline, which has been struggling amid the Boeing 737 MAX grounding, the COVID-19 pandemic’s impact, and increasing competition from rivals like Akasa Air. The unpaid rent obligations date back to January 2022, while the maintenance charges have been outstanding since November 2020.
Sunbird France 02 SAS issued default notices in July 2022 and subsequently repossessed all three engines between late 2022 and mid-2023. Although SpiceJet initially engaged British legal counsel, it failed to submit any defense or response to the lessor’s application, as revealed in the court’s judgment.
The airline has not provided any comment on the ruling. Meanwhile, its auditors have expressed concerns about SpiceJet’s ability to continue operating as a going concern, highlighting growing losses and a significant gap between current liabilities and assets in the company’s latest financial statements.
