A UK court has ruled that SpiceJet must pay about $8 million to an aircraft engine lessor for unpaid rent and maintenance charges tied to three engines. The decision marks another setback for the Indian airline as it continues to face financial pressure.
London’s Commercial Court granted summary judgment in favour of Sunbird France 02 SAS on Wednesday. The court found that SpiceJet had no viable defence in the case.
The dispute centres on unpaid rent dating back to January 2022 and maintenance accruals going back to November 2020. The lessor issued default notices in July 2022. It later repossessed all three engines between late 2022 and mid-2023. The ruling followed a legal challenge over those unpaid dues and related obligations.
The judgment comes at a difficult time for SpiceJet. The airline has already been under financial strain in the aftermath of the Boeing 737 MAX grounding and the COVID-19 pandemic. At the same time, the carrier has also been losing market share to competitors such as Akasa Air. That broader business pressure adds context to the latest court order.
The judgment showed that SpiceJet initially hired British solicitors. However, the airline did not file a defence or response to Sunbird’s application. The report also said SpiceJet did not respond to an email seeking comment. That absence of a formal defence appeared to strengthen the lessor’s case in court.
The latest ruling also comes amid ongoing concerns about SpiceJet’s financial health. According to its latest results, the airline’s auditors have flagged uncertainty over its ability to continue as a going concern. Those concerns were linked to mounting losses and a gap between current liabilities and assets. As a result, the court order adds to the airline’s growing list of financial challenges.
