Three More Weeks for SpiceJet To Return Leased Assets

A division bench of the Delhi High Court on Monday gave SpiceJet an additional three-week extension to return leased assets. The company has been asked to return the assets to TWC Aviation Capital Limited, the lessor.

The ruling

Three additional weeks have been given to SpiceJet by the Delhi High Court to return the assets the company had leased from TWC. The assets include two Boeing aircraft and three engines. The airline now needs to return the goods by June 17, 2024. The court also rejected a plea by SpiceJet that challenged the initial court ruling of ordering them to return the assets. The court first asked SpiceJet to return the items by May 28, 2024, but seeing how the airline still needs to do so, an additional three weeks are now granted to them. As reported by Mint, the court claims that the “airlines owes a significant amount of dues to lessors and was prima facie found to have used the assets inappropriately, especially by utilising the lessor’s engines in other aircraft, which violates regulations.” The new extension has been granted on the condition that SpiceJet will withdraw its plea challenging the court order.

SpiceJet’s Argument

In their defence, SpiceJet presented the argument that the leased engines are being used in operational flights that were booked in advance by passengers, hence making it difficult for the airline to return the leased assets. Amit Sibal, SpiceJet's legal representative, presented the airline’s track record of settling its debts in the past and highlighted the importance of the leased aircraft and engines in SpiceJet’s daily work. The company also proposed a weekly payment of $50,000 to TWC as part of the settlement.

The aircrafts and engines were first loaned to SpiceJet in 2019 by TWC on a $180,000 per month rent agreement. However, the airline soon defaulted on its payments, and in return, TWC filed a lawsuit to take back its assets.