Lessor Rejects SpiceJet’s Offer to Settle Unpaid Dues
Aircastle, a lessor to Indian budget airline SpiceJet Ltd, informed a tribunal on Wednesday that settlement discussions regarding unpaid dues had yielded no conclusive results. Earlier this month, the Ireland-based lessor initiated bankruptcy proceedings against SpiceJet due to non-payment of lease rentals and other outstanding amounts. According to a lawyer present at the hearing, SpiceJet owes Aircastle approximately 500 million rupees ($6 million).
Spicejet
Aircastle stated that the settlement offer from the airline was insufficient, and the talks had not made any progress. The tribunal is scheduled to resume the case on May 25.
SpiceJet requested an extension from the tribunal to address Aircastle’s bankruptcy petition and also has not responded to a comment request.
The Indian airline is working hard to secure funds amidst consecutive quarterly losses and increasing competition in the local market. It recently announced the revival of 25 grounded aircraft using its own funds and a $50 million line of credit from an Indian government scheme.
However, the bankruptcy proceedings of rival airline Go First have unnerved international lessors who now face the prospect of a protracted legal struggle to reclaim their planes from India.
Spicejet’s lessors, including SMBC Aviation, have submitted several requests to India’s aviation regulator to de-register their planes and fly them out due to pending dues. However, the airline stated that it does not intend to file for insolvency and expressed gratitude for the support and confidence of its lessors.
SpiceJet is one of India’s leading low-cost airlines, with a fleet of over 100 aircraft and a network that covers both domestic and international destinations. Industry experts view Kashyap’s appointment as a key step in SpiceJet’s continued growth and success, as the airline has been expanding rapidly in recent years.
Also, Read: Indian Aviation News
Private & Non-scheduled Charter operators in India
Go through, the Mall of Aviation
For the best HELIPAD CONSULTANCY
About Author
