The Delhi High Court has mandated that SpiceJet Ltd’s Chief Financial Officer (CFO) appear in court on August 8 if the airline fails to settle an outstanding payment of Rs 20 crore to its engine lessors. The lessors involved, Team France 01 SAS and Sunbird France 02 SAS, initially brought the matter to court in December due to the airline’s failure to meet its financial obligations.
SpiceJet has informed the court that it is actively engaged in raising the necessary funds and is optimistic about fulfilling the payment by the scheduled hearing date. The airline’s assurance comes amidst a backdrop of ongoing financial strain, which has led to repeated court interventions. Earlier, on May 29, the High Court had instructed SpiceJet to pay $4.8 million in four instalments as an interim measure, allowing the carrier to continue operating three leased engines from the lessors. Additionally, the court mandated weekly payments of $160,000 from June 8 through September 30. The court’s directives were designed to facilitate the airline’s continued use of the engines while addressing the arrears.
Should SpiceJet fail to comply with these payment terms, the court has decreed that the airline must ground and return the three engines within 15 days. This ultimatum underscores the severity of the situation and the potential operational impact on SpiceJet, a low-cost carrier grappling with significant financial challenges. The lessors have expressed dissatisfaction with SpiceJet’s previous assurances and are seeking legal recourse to enforce payment. The court’s decision to summon SpiceJet’s spokeperson reflected a heightened judicial scrutiny of the airline’s financial conduct and its adherence to court orders.
The ongoing case highlights the broader financial struggles facing the aviation sector, particularly low-cost carriers like SpiceJet, which are navigating complex financial and operational hurdles. The resolution of this matter will be closely watched by industry stakeholders, as it may influence similar disputes and the broader financial health of the airline sector in India.
