SpiceJet in Hot Water for Court Contempt

Court Slaps SpiceJet with Contempt Notice

Despite earlier deadlines, the Delhi High Court has issued a contempt notice to SpiceJet for failing to return three aircraft engines to lessor TWC Aviation Capital. However, the court will suspend the action if the low-cost carrier returns the engines by the new deadline of July 8, 2024.

TWC Aviation sought to reclaim its engines as SpiceJet accumulated around $14 million in debts. In mid-May, following a UK judgment, the Delhi High Court ordered the handover of the engines by May 28, which was later extended to June 16, but the handover did not take place.

Representing SpiceJet on July 2, Senior Advocate Amit Sibal informed the court that the engines were installed on in-service aircraft and removing them would require grounding the aircraft. During the May hearings, the court reprimanded SpiceJet for transferring the engines from their designated aircraft to other airframes, which was against the original lease terms.

SpiceJet is facing prolonged and significant operational challenges due to many out-of-service aircraft. Out of its 56 aircraft (excluding wet-leased aircraft), 33 are grounded, including three out of five B737-700s, two out of three B737-700(BDSF)s, two out of seven B737-8s, five out of fourteen B737-800s, all three B737-900ERs, and eighteen out of twenty-four DHC-8-Q400s. SpiceJet is seeking to alleviate this impact by wet-leasing eight planes. The case will be heard in court again on July 9.