SpiceJet two aircraft were deregistered by DGCA at the request of the lessor

On Thursday, the Directorate General of Civil Aviation (DGCA) utilized the Irrevocable De-registration and Export Request Authorisations (IDERA) to deregister two Boeing 737s leased to SpiceJet.

According to a senior regulator official, the occurrence is a result of the Irrevocable De-registration and Export Request Authorisations (IDERA) provisions.

According to a report from TOI, two Dublin-based lessors, namely Wilmington Trust SP Services and Aircastle (Ireland), requested the deregistration of the aircraft.

SpiceJet, the deregistration of the aircraft will not have any impact on the carrier’s operations, according to a spokesperson. The spokesperson clarified that they had grounded one of the aircraft for a significant amount of time and scheduled to return it, while they returned the other one due to engine problems. Both aircraft agreed to return through mutual agreement.

SpiceJet

The aircraft lessor can unilaterally invoke IDERA, which allows them to deregister and repossess their aircraft from the lessee, SpiceJet, in the event of a default on lease rental payments. In accordance with the regulations, the DGCA must deregister the plane within five working days following this action.

The carrier has faced IDERAs before. In the previous year, two lessors based overseas, Alterna Aircraft VB and AWAS, which is a subsidiary of Dubai Aerospace Enterprise (DAE), a giant in aircraft leasing, had requested that India’s aviation regulator deregister one aircraft of SpiceJet each. This was due to the airline’s alleged non-payment.

As a part of its efforts to update its fleet, the airline has announced plans to retire its old planes and replace them with new ones. In a recent development, the low-cost carrier revealed that it has restructured its outstanding dues to aircraft leasing firm Carlyle Aviation Partners, amounting to over USD 100 million. The company achieved this by issuing equity shares and compulsorily convertible debentures (CCDs). The Board of Directors of SpiceJet Ltd also approved the issuance of fresh equity shares worth USD 29.5 million (Rs 244.28 crore) to Carlyle Aviation Partners at a rate of Rs 48 per share or the SEBI-determined price, whichever is higher.

Carlyle Aviation Partners is set to acquire a 7.5% equity stake in SpiceJet Ltd., which would effectively retire more than USD 100 million of the airline’s debt. The move is expected to bolster SpiceJet’s balance sheet, paving the way for the company’s future expansion plans.

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