TBM Staff - Mumbai
SpiceJet has faced an insolvency plea from engine lessor ELF, citing the airline’s default on lease payments since April 2021. Initially, SpiceJet raised technical objections to ELF’s plea, but the tribunal allowed ELF to rectify the errors. Once the defects were rectified, the insolvency tribunal issued a notice to the airline.
ELF, headquartered in Shannon, Ireland, is the world’s leading independent engine financing and leasing company. It entered into an agreement with SpiceJet in 2017 to lease engines. In 2023, ELF approached the Delhi High Court against SpiceJet after terminating the lease for two engines and sought possession. The parties later reached a settlement, but ELF again approached the high court alleging that SpiceJet had failed to pay in accordance with the settlement terms. This matter is still pending before the Delhi High Court.
SpiceJet has faced insolvency petitions from several other creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington, and Celestial Aviation. The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal. Additionally, Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) challenging the dismissal of their insolvency pleas by the NCLT.
