After Go First, Trouble Mounts For SpiceJet As Lessors Get Three Planes Deregistered By DGCA

The turbulence in the Indian aviation industry may not be limited to Go First, which recently grounded its fleet and filed for bankruptcy.

Another budget carrier, SpiceJet, has also run into troubles with lessors.

BCCL

Lessors want five planes deregistered

The Directorate General of Civil Aviation (DGCA) has deregistered three SpiceJet aircraft at the lessors' request.

Earlier this month, the lessors - Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing had approached the DGCA to get a total of five leased planes deregistered over non-payment of dues.

Under the Cape Town Convention (CTC), if a lessor has invoked the Irrevocable De-registration and Export Request Authorisation (IDERA), the plane concerned must be deregistered.

BCCL

Won't affect operations: SpiceJet

Following the deregistering of the three planes, SpiceJet, in a statement, said that its operations will not be affected as two of them were already grounded.

SpiceJet had 67 aircraft in its fleet comprising Boeing 737s, B737 Max and Bombardier-Q400s. Out of these, only 37 were in operation until earlier this month.

All three deregistered planes belonged to SMBC, another SpiceJet lessor.

Another lessor approaches NCLT

Yet another lessor Ireland-based Aircastle had sought to initiate bankruptcy proceedings against SpiceJet over non-payment of lease rentals and other dues. The airline owes Aircastle around $6 million.

On Wednesday, Aircastle told the National Company Law Tribunal (NCLT) that settlement talks with the company over unpaid dues were inconclusive.

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Credit Suisse takes SpiceJet to SC

SpiceJet's troubles are not just limited to lessors. The Supreme Court on Wednesday gave SpiceJet time till July 18 to pay the settlement amount to Credit Suisse in the $24-million dispute.

Credit Suisse told the court that while SpiceJet had made some payments, an outstanding amount of around $4.4 million is yet to be paid.

The Swiss firm had filed a winding-up case against the airline for failing to honour $24 million towards payment of servicing the aircraft engines and components in 2013.

Not filing for bankruptcy: Ajay Singh

After the collapse of Go First earlier this month, following which the Wadia Group-owned airline filed for voluntary insolvency, there have been speculations that SpiceJet could follow suit.

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However, Ajay Singh, chairman and managing director of SpiceJet, ruled out bankruptcy last week and said that the airline was trying to revive its grounded fleet.

"There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focused firmly on reviving our grounded fleet and getting more and more planes back into the air," Singh had said.

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