The Delhi High Court has ordered SpiceJet to pay two leasing companies, Team France and Sunbird France, a total of over $6 million by early 2025. The amount includes $2.67 million to be paid within 7 days and $3.34 million within 3 weeks. The court has been critical of SpiceJet’s conduct in the matter, with Justice Anish Dayal describing it as “corporate anarchy”. The two leasing companies had initially sought $20 million in damages from SpiceJet after the airline failed to make lease payments for two years.
In May 2024, a settlement was reached, with SpiceJet agreeing to pay $4.8 million over 4 instalments and make weekly payments during the 2024 northern summer season in exchange for using the engines. However, SpiceJet defaulted on the payments and was subsequently ordered by the court to stop using the engines and return them to the lessors. Despite this, SpiceJet ignored the repayment plan and the court orders.
The airline’s chairman and managing director, Ajay Singh, and chief financial officer, Joyakesh Podder, appeared in court on January 16 in response to a summons to appear in person. Singh assured the court that SpiceJet would make the payments. The court has yet to issue a final order, but has granted the lease companies an opportunity to file a contempt petition if SpiceJet fails to make the payments. The case highlights the ongoing financial struggles of SpiceJet, which has faced numerous challenges in recent years, including delayed payments and aircraft seizures.