The finance leasing arm of Industrial & Commercial Bank of China has filed a request with the Directorate General of Civil Aviation (DGCA) to take back four Boeing 737 Max aircraft leased to SpiceJet. ET has reviewed a copy of the notice.
Last year, Parliament passed a landmark aviation bill that will make it easier for global aircraft leasing companies to repossess jets and engines in the eventuality of an Indian carrier defaulting on payments.
Nearly 80% of SpiceJet’s fleet is currently grounded amid the carrier’s continued financial woes. As of Monday, the airline was operating just about 60 flights using barely a dozen aircraft.
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SpiceJet’s failure to pay lease rentals has not only grounded most of its planes but also affected their regular maintenance due to a lack of spare parts.
A spokesperson for SpiceJet said the planes have been grounded for more than a year, asserting that their repossession by the lessor won’t impact its scheduled flight operations. “The airline continues to remain in discussions with manufacturers and lessors for return to service of these planes,” the spokesperson said.A large portion of the airline’s employees haven’t got their salaries for more than two months, said a SpiceJet pilot. Most have also been sent on leave without pay.
Despite raising ₹3,000 crore in 2024, the carrier has run out of cash as a large portion of the fresh capital was used primarily for clearing statutory dues like goods and services tax (GST), tax deducted at source (TDS), and provident fund.
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The financial challenges are also reflecting on daily operations with on-time performance being the poorest and cancellation rate the highest among all airlines in May.