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SpiceJet sued over unpaid leasing dues for more than $27 million

BOC Aviation and Wilmington Trust Services, two Ireland-based companies, sued SpiceJet, an Indian budget airline, for more than $27 million (Rs 200 crore) for outstanding leasing agreements of six Boeing 737 aircraft.

According to filed complaints with the Property Court at High Court in London, two separate aircraft lease agreements for six Boeing 737-800 jets were signed with SpiceJet in December 2018 and May 2019. The first agreement was signed with Wilmington Trust and another one was with BOC Aviation.

In the complaints, both companies stated that SpiceJet did not pay the lease and other charges under the aircraft lease agreements. Wilmington Trust announced that under the terms of the lease signed in 2018, SpiceJet had debt worth $19 million. According to the complaint, the leasing company seeks to get an additional $755,000 in fees. 

Meanwhile, under the lease signed in 2019, SpiceJet agreed to pay BOC Aviation $220,000 a month for three Boeing 737-800 aircraft. The airline was also required to pay fees to cover major maintenance. However, the air carrier defaulted all payments, BOC Aviation claimed in the complaint. Currently, BOC Aviation is looking to recoup more than $6.5 million it says it is owed in outstanding payments.

On October 5, 2020 SpiceJet announced its intention to respond to the court on October 19, 2020.  After the response, the case will proceed in the coming weeks.

 

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