UK court orders SpiceJet to pay $8 million to engine lessor over unpaid dues

A UK court has ordered India's SpiceJet to pay about $8 million to an aircraft engine lessor over unpaid rent and maintenance charges for three engines, in the latest ‌setback for ⁠the ⁠cash-strapped airline.

London's Commercial Court granted summary judgment on Wednesday in favour of Sunbird France 02 SAS over the unpaid rent and maintenance accruals, finding that SpiceJet had no viable defence.

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The ruling comes as SpiceJet remains under ⁠financial strain ‌following the Boeing 737 MAX grounding and COVID-19 pandemic, and losing market ⁠share to rivals such as Akasa Air.

The ​unpaid rent dates from January 2022, ​while maintenance accruals date back to November 2020. The lessor issued default notices in July 2022 and repossessed all three engines between late 2022 and mid-2023.

SpiceJet initially ‌hired British solicitors but never filed a defence or response to Sunbird's ​application, the ​judgement showed.

The ⁠airline did not respond to an email seeking comment.

Its auditors have warned of uncertainty over the ​airline's ability to continue as a going concern, citing mounting losses and a gap between current liabilities and assets, according to its latest results.