In a recent development, the National Company Law Tribunal (NCLT) has scheduled the next hearing of aircraft lessor Wilmington Trust SP Services' plea against SpiceJet for June 16, 2023.
Wilmington Trust, along with two other lessors, Sabarmati Aviation Leasing and Falgu Aviation Leasing, had approached the Directorate General of Civil Aviation (DGCA) in May to deregister three planes of SpiceJet due to non-payment of dues.
The NCLT had previously issued a notice to SpiceJet in response to a petition filed by an aircraft lessor seeking the initiation of insolvency resolution proceedings. SpiceJet currently operates a fleet of 67 aircraft, including Boeing 737, B737 Max, and regional jets Bombardier-Q400. As of early May, 37 aircraft were operational, while 30 were not in service.
Furthermore, Wilmington Trust is the third lessor to approach the NCLT for recovering their dues from SpiceJet. Engine lessor Willis Lease Finance and aircraft lessor Aircastle have also filed pleas pending in the tribunal. Aircastle's plea is set to be heard on July 17, while Willis Lease Finance's case is scheduled for July 4.
In response to the pending cases, SpiceJet has mobilized up to Rs 400 crore from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals to revive 25 non-operational aircraft in its fleet. The airline has been actively working to resolve the matter and stated that the grounding of two of the three planes does not significantly impact its operations.
The DGCA had deregistered three planes of SpiceJet, including one belonging to Wilmington Trust, upon the lessors' request. These planes, with call signs VT-MXJ, MXF, and SZJ, were removed from the airline's fleet. The ongoing disputes between SpiceJet and its lessors highlight the financial challenges faced by the low-cost carrier.
With the NCLT hearing Wilmington Trust's insolvency plea on June 16, the aviation industry eagerly awaits further updates on the outcome of these legal proceedings and their potential impact on SpiceJet's operations.
Source: Link
Picture Source : <a href="https://commons.wikimedia.org/wiki/File:SpiceJet_VT-SZI_at_Bangalore,_Sept_2015.jpg">Venkat Mangudi</a>, CC0, via Wikimedia Commons
