NCLT asks SpiceJet to settle disputes with lessors in ongoing insolvency cases

NCLT on Tuesday asked SpiceJet to work towards resolving disputes with the lessors who have initiated insolvency proceedings against the airline

New Delhi: The National Company Law Tribunal (NCLT) on Tuesday asked SpiceJet to work towards resolving disputes with the lessors who have initiated insolvency proceedings against the airline.

This came during an insolvency plea filed by one of the lessors — Celestial Aviation Services Limited — against the low-cost airline. The NCLT noted that all insolvency petitions against SpiceJet have been brought forward by lessors rather than banks or financial institutions. Consequently, the tribunal encouraged the airline to consider settling with the lessors, stressing that this could be in its best interest.

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In May, lessors had requested the Directorate General of Civil Aviation (DGCA) to deregister one aircraft each from Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation leasing with the airline. Celestial Aviation Services Limited’s insolvency plea marks the fifth such case against SpiceJet. Other lessors, including Willis Lease Finance, Aircastle, and Wilmington, have also filed petitions.

The pleas are scheduled for a hearing on September 15. Recently SpiceJet entered into a settlement agreement with Nordic Aviation Capital (NAC), a major lessor for its Q400 aircraft, a spokesperson had said. “The agreement settles all past liabilities for the Q400s leased by NAC to SpiceJet. The airline presently operates five Q400 aircraft from NAC in its fleet,” the airline had claimed.

The SpiceJet spokesperson had said that separately, the airline will be inducting three additional Q400 aircraft from NAC back into its fleet. “These three planes had been repossessed by the lessor. The induction of the three planes in addition to the fleet revival and restoration program launched by the airline would result in a substantial addition of planes in the SpiceJet fleet in the coming weeks,” it was told.

Earlier, the DGCA had said that SpiceJet has been removed from the enhanced surveillance regime. The decision came after the airline, which has faced several challenges, was placed under close monitoring by the aviation watchdog.