SpiceJet’s settlement offer not good enough: Airline’s lessor Aircastle tells NCLT
The NCLT has listed Aircastle’s insolvency plea against SpiceJet on May 25. The lessor claimed that the airline has unpaid dues.
- May 17, 2023,
- Updated May 17, 2023 2:20 PM IST
Ireland-based Aircastle, one of budget airline SpiceJet’s lessors, on Wednesday told the National Company Law Tribunal (NCLT) that the airline’s settlement was not good enough. Aircastle added that talks with SpiceJet over missed payments were inconclusive. The airline owes Aircastle around $6 million, a lawyer present at the hearing told news agency Reuters.
The NCLT has listed Aircastle’s insolvency plea against SpiceJet on May 25. The lessor claimed that the airline has unpaid dues and sought insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC). The tribunal asked the airline to file a response to the insolvency plea and explore options for settlement.
Aircastle’s plea comes after lessors of the airline submitted requests to the civil aviation regulator Directorate General of Civil Aviation (DGCA) to deregister three aircraft out of the airline’s fleet. All three planes belong to SMBC, one of the SpiceJet’s many lessors. The aircraft are being held under different portfolios but all of them belong to SMBC.
Other lessors who sought deregistration of SpiceJet’s aircraft were Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing.
SpiceJet said in its clarification: “Two of the three planes are grounded for a long period now and the same doesn’t affect our operations. We hold a very good relationship with the lessor and are in discussions to resolve the matter. We have been working to bring back our grounded fleet basis the loan sanctioned under the ECLGS scheme”.
The airline had said last week that it has no plans to file for insolvency. The airline said: “Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence”.
The development comes on the back of Wadia Group-backed airline Go First filing for insolvency resolution proceedings earlier this month. The airline was granted bankruptcy protection by the NCLT. The airline made its highest annual financial loss to date in FY 2022.
Several Go First lessors have approached the DGCA for deregistration and repossession of 45 planes owned by the airline.
(With agency inputs)
Also read: Several passengers on Delhi-Sydney Air India flight injured amid severe turbulence
Also read: Go First pilots have a problem joining other airlines...it's the notice period
Ireland-based Aircastle, one of budget airline SpiceJet’s lessors, on Wednesday told the National Company Law Tribunal (NCLT) that the airline’s settlement was not good enough. Aircastle added that talks with SpiceJet over missed payments were inconclusive. The airline owes Aircastle around $6 million, a lawyer present at the hearing told news agency Reuters.
The NCLT has listed Aircastle’s insolvency plea against SpiceJet on May 25. The lessor claimed that the airline has unpaid dues and sought insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC). The tribunal asked the airline to file a response to the insolvency plea and explore options for settlement.
Aircastle’s plea comes after lessors of the airline submitted requests to the civil aviation regulator Directorate General of Civil Aviation (DGCA) to deregister three aircraft out of the airline’s fleet. All three planes belong to SMBC, one of the SpiceJet’s many lessors. The aircraft are being held under different portfolios but all of them belong to SMBC.
Other lessors who sought deregistration of SpiceJet’s aircraft were Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing.
SpiceJet said in its clarification: “Two of the three planes are grounded for a long period now and the same doesn’t affect our operations. We hold a very good relationship with the lessor and are in discussions to resolve the matter. We have been working to bring back our grounded fleet basis the loan sanctioned under the ECLGS scheme”.
The airline had said last week that it has no plans to file for insolvency. The airline said: “Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence”.
The development comes on the back of Wadia Group-backed airline Go First filing for insolvency resolution proceedings earlier this month. The airline was granted bankruptcy protection by the NCLT. The airline made its highest annual financial loss to date in FY 2022.
Several Go First lessors have approached the DGCA for deregistration and repossession of 45 planes owned by the airline.
(With agency inputs)
Also read: Several passengers on Delhi-Sydney Air India flight injured amid severe turbulence
Also read: Go First pilots have a problem joining other airlines...it's the notice period