Dubai Court allows SpiceJet to resume operations of aircraft seized by lessor

A Dubai-bound SpiceJet flight was diverted to Al Maktoum International Airport on November 30 and was seized by lessors on landing. Lessors had reportedly obtained a court order to repossess the aircraft.

However, the airline on December 8 said the aircraft could return to normal operations anytime and that it is up to it when it will resume, in accordance with a Dubai court directive.

According to a report in The Hindu, SpiceJet’s SG 15 took off from Ahmedabad at 12.12 am on November 30 and was airborne for three hours. When approximately 10 minutes away from its destination, Dubai International Airport, it was instructed to divert to Dubai’s second and less-busy airport, Al Maktoum International, also known as Dubai World Central .

Once the aircraft landed, SpiceJet's lessors waited for passengers to deplane and thereafter seized the aircraft.In a statement to CNBC-TV18, SpiceJet said that the Dubai International Financial Centre Court on October 30, 2023, issued a freezing order in relation to certain engines installed on aircraft bearing Indian registration mark VT-SLM. “As a result of aforesaid Order, the aircraft was grounded at Al Maktoum International Airport, Dubai and has remained there since.

”It added that following a court hearing on December 7, 2023, the order was discharged in favour of the airline. Additionally, the judge has directed an inquiry into losses suffered by SpiceJet as a result of the order having been made.

“The Court has further ordered to pay towards the legal costs incurred by SpiceJet. Summarily, there isn’t any Order of the DIFC Court restricting SpiceJet from operating the aircraft, including departing from DWC,” the airline clarified.

The development comes at a time when the airline is stuck in several legal battles. Four aircraft lessors have filed an insolvency plea against SpiceJet this year over non-payment of dues.

Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington and Celestial have filed petitions, asking the National Company Law Tribunal to admit SpiceJet to the insolvency process to enable them to recover their dues.According to aviation consulting agency CAPA India’s estimates, SpiceJet has registered 72 aircraft for until the end of FY24, and of these 28 are operational.

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