SpiceJet faces yet another insolvency case from engine lessor
For SpiceJet to stay afloat, some crew will have to deplaneIn December, Engine Lease Finance BV approached the Delhi High Court after settlement talks failed, alleging the airline only made partial payments and violated the terms of the agreement.In October, SpiceJet had agreed to pay the lessor about $2 million and return the leased engines by 25 January. It eventually returned the leased engines in March on the court's orders.SpiceJet has faced several insolvency pleas in the NCLT over pending dues from various parties including Wilmington Trust SP Services (Dublin), Willis Lease Finance, Celestial Aviation, Aircastle, and Alterna Aircraft.
In April, three entities—AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland—filed such a plea against the airline for allegedly defaulting on rental dues of ₹77 crore. Also read: Delhi HC grants SpiceJet three weeks more to return leased assets to TWC AviationThe NCLT rejected the pleas of Willis Lease Finance and Wilmington Trust SP, while SpiceJet settled with Celestial Aviation.
The pleas by Aircastle, Alterna Aircraft, AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 are pending. Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) to challenge the NCLT's dismissal of their insolvency pleas.Also read: Foreign pilots might get to ride India's aviation boom for another yearMilestone Alert!
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