By Abhijith Ganapavaram NEW DELHI, April 9 (Reuters) - A UK court has ordered India's SpiceJet to pay about $8 million to an aircraft engine lessor over unpaid rent and maintenance charges for three
UK Court Directs SpiceJet to Pay $8M Engine Rent Amid Financial Woes
SpiceJet Faces Legal and Financial Challenges
By Abhijith Ganapavaram
UK Court Ruling and Background
NEW DELHI, April 9 (Reuters) - A UK court has ordered India's SpiceJet to pay about $8 million to an aircraft engine lessor over unpaid rent and maintenance charges for three engines, in the latest setback for the cash-strapped airline.
London's Commercial Court granted summary judgment on Wednesday in favour of Sunbird France 02 SAS over the unpaid rent and maintenance accruals, finding that SpiceJet had no viable defence.
Financial Strain and Market Impact
The ruling comes as SpiceJet remains under financial strain following the Boeing 737 MAX grounding and COVID-19 pandemic, and losing market share to rivals such as Akasa Air.
Timeline of Unpaid Rent and Maintenance
The unpaid rent dates from January 2022, while maintenance accruals date back to November 2020. The lessor issued default notices in July 2022 and repossessed all three engines between late 2022 and mid-2023.
Legal Proceedings and Response
SpiceJet initially hired British solicitors but never filed a defence or response to Sunbird's application, the judgement showed.
The airline did not respond to an email seeking comment.
Auditor Warnings and Financial Outlook
Its auditors have warned of uncertainty over the airline's ability to continue as a going concern, citing mounting losses and a gap between current liabilities and assets, according to its latest results.
($1 = 92.6575 Indian rupees)
(Reporting by Abhijith GanapavaramEditing by Bernadette Baum)
