Delhi HC asks SpiceJet to ground three engines and return them to lessors in 15 days
SpiceJet Ltd, the Delhi High Court on Wednesday asked it to ground the three engines by Friday and return them to its lessors — Team France 01 SAS and Sunbird France 02 SAS — in 15 days.
It also asked the low-cost carrier to make arrangements for inspection of these engines.
The Ajay Singh-led carrier has been struggling to secure funding following consecutive quarterly losses. The airline faces legal action from lessors over unpaid dues and has had requests made to the aviation regulator for de-registering their aircraft.
While leading Indian airlines, including IndiGo and those within the Air India group, have added new jets over the past year to meet the surging demand in one of the world’s fastest-growing aviation markets, SpiceJet has struggled to reintegrate its grounded aircraft. The airline has faced legal and financial challenges, leading to a decline in market share.
As of March 2024, SpiceJet held Rs 187 crore in cash and cash equivalents, but had a negative Rs 613 crore in cash flow from operations.
SpiceJet in late July announced plans to raise approximately Rs 3,000 crore (around $360 million) through the sale of securities, including shares, as part of its effort to stabilize and fully restore operations. The budget airline will issue shares to institutional investors, though the pricing details were not disclosed.
In February, SpiceJet announced it had raised an additional Rs 316 crore, bringing the total funds secured through a preferential share issue to Rs 1,060 crore. This followed an
