UK court orders SpiceJet to pay $8 million to engine lessor over unpaid rent, maintenance

A court in the UK has ordered India’s SpiceJet to pay nearly $8 million to an aircraft engine lessor for unpaid rent and maintenance costs for three engines, in a latest setback for the cash-strapped airline.

London’s Commercial Court granted summary judgment in favor of Sunbird France 02 SAS on Wednesday on unpaid rent and child support accruals, finding that SpiceJet had no valid defence.

The decision comes as SpiceJet is under financial pressure following the grounding of the Boeing 737 MAX and the COVID-19 outbreak, losing market share to rivals such as Akasa Air.

Unpaid rent is dated from January 2022 and maintenance accruals are from November 2020. The lessor issued notices of default in July 2022 and repossessed all three engines between late 2022 and mid-2023.

The ruling showed that SpiceJet had initially hired British lawyers but never filed a defense or response to Sunbird’s application.

The airline did not respond to an email seeking comment.

In its latest results, auditors warned of uncertainty over the airline’s ability to continue operating, citing mounting losses and a gap between current liabilities and assets.