SpiceJet withdrew its plea on Monday (May 27, 2024) against an order requiring it to return two leased aircraft and three engines to TWC Aviation Capital Limited.
The Delhi High Court granted SpiceJet time until June 17 to comply with the order, according to media reports.
This decision came after SpiceJet’s request to overturn an earlier order to return the assets was dismissed by the court.
The court expressed concerns about SpiceJet’s use of the assets, noting that the airline owes significant dues to lessors. It highlighted SpiceJet’s alleged inappropriate use of the lessor’s engines in other aircraft, which violated regulations.
Despite this, SpiceJet was granted an extension on the condition that it withdraw its challenge to the previous order and argue its case in front of the single bench.
SpiceJet argued that it needed time to replace the leased engines, as they were important for its flight operations.
The airline’s representative, Amit Sibal, highlighted the importance of these engines, which constitute around 7.5% of its total fleet. SpiceJet proposed a settlement to clear its dues with TWC Aviation, offering to pay $50,000 per week.
The single bench of the court had previously ordered SpiceJet to return the leased assets by May 28 due to unpaid dues. The court pointed out that airline had harmed TWC Aviation’s assets by using the engines in other aircraft.
TWC Aviation had leased the assets to SpiceJet in 2019, but the airline failed on its rent payments, leading to legal disputes.
Also Read: Soon, Club Vistara to Merge With Air India’s Flying Returns Program
These disputes escalated when the High Court of England and Wales issued an interim injunction against SpiceJet, restricting it from using TWC’s engines on other aircraft.
Despite SpiceJet’s challenges, the court ruled in TWC’s favor, ordering the airline to return the leased assets.
Airline is facing multiple lawsuits over unpaid dues, with the court ordering the airline to pay its engine lessors $1.58 million by May 22 to avoid grounding its aircraft.
These legal battles highlight the challenges faced by airline amid financial difficulties and disputes with lessors.
Want to learn the art and science of managing your money? The 1% Club can help. Details here
