Delhi High Court Directs SpiceJet to Pay $4 Million to Engine Lessors; Warns of Potential Grounding

In a setback for budget carrier SpiceJet, the Delhi High Court issued a directive on January 29, compelling the airline to settle $4 million against its dues to two engine lessors.

The High Court cautioned SpiceJet that failure to comply with the payment order could lead to further legal action, potentially resulting in the grounding of the engines.

The lessors informed the court during the hearing that although SpiceJet had proposed a settlement, the offer was not acceptable to them. Expressing their intention to pursue litigation against the airline, the lessors highlighted their dissatisfaction with SpiceJet’s outstanding payment of $12.9 million over a two-year period.

The case is scheduled for the next hearing on February 21, 2024. This ruling follows a previous directive in December 2023, where SpiceJet was instructed to pay $450,000 to the lessors within two weeks, following which the lessors sought additional payments due to outstanding amounts.