A UK court has dealt another blow to SpiceJet, ordering the cash-strapped carrier to pay around $8 million to engine lessor Sunbird France 02 SAS over unpaid dues linked to three aircraft engines.
London’s Commercial Court granted summary judgment in favour of the lessor, ruling that SpiceJet had no realistic prospect of defending the claim. The dispute centres on unpaid rent dating back to January 2022 and maintenance accruals from November 2020. Sunbird had issued default notices in July 2022 before repossessing the engines between late 2022 and mid-2023.
The judgment also revealed that SpiceJet initially engaged British legal counsel but failed to file any formal defence or response to the claim, weakening its position in court.
Mounting financial pressure on SpiceJet
The latest ruling adds to mounting financial pressures on the airline, which has been grappling with liquidity constraints following the grounding of the Boeing 737 MAX fleet and the prolonged impact of the COVID-19 pandemic. The airline has also steadily lost market share to newer rivals such as Akasa Air.
SpiceJet’s auditors have already flagged concerns about its ability to continue as a going concern, citing sustained losses and a widening gap between liabilities and assets in its latest financial disclosures.
Operational challenges have further intensified the crisis. The airline has initiated workforce reductions amid a shrinking fleet and persistent delays in salary payments. Several news reports indicate that nearly 500 employees could be impacted in the initial phase, with measures such as furloughs and leave without pay under consideration.
In a sign of deepening strain, even employees serving notice periods have reportedly been asked to exit early.