SpiceJet CMD Ajay Singh asserted that the airline was not filing for insolvency after news of this kind started spreading in the media
Even after GY Aviation Lease’ move to approach aviation regulator DGCA (Directorate General of Civil Aviation), India’s budget carrier SpiceJet said it has no plans to file for insolvency proceedings and has also started the process of reviving its grounded fleet with $50 million.
SpiceJet CMD Ajay Singh asserted that the airline was not filing for insolvency after news of this kind started spreading in the media. This however, did not comfort lessors and on Friday, lessors requested the DGCA to de-register two more aircraft with the airline so that they can be repossessed.
The airline, according to aircraft tracking websites, had 67 aircraft in its fleet comprising Boeing 737, B737 Max and regional jets Bombardier-Q400. Of them, 37 were in operation and 30 not in service as on May 3.
“Lessors use this option in cases like default of lease rentals and aviation regulators have to de-register aircraft within five days of getting this request,” Times of India reported.
“Foreign lessors have been alarmed ever since National Company Law Tribunal (NCLT) admitted Go First’s plea for voluntary insolvency due to which their request for repossessing 45 of Go’s 54 aircraft cannot be processed.
The latest development comes after the National Company Law Tribunal (NCLT) on May 8 issued a notice to the Ajay Singh-promoted private carrier on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against it. The tribunal is scheduled to hear the plea on May 17
Following this, aircraft leasing watchdog Aviation Working Group (AWG) issued a ‘watchlist notice’ for India. It warned this case “would have a direct and material impact on future financings and leases to Indian airlines.” AWG is non-profit entity co-chaired by Airbus and Boeing and comprises of the world’s biggest aviation manufacturers, leasing companies, and financial institutions,” said the report.
According to media reports, many aircraft of the budget carrier are grounded due to various reasons. Recently, the airline’s three lessors — Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing — had sought the deregistration of one aircraft each, according to an update on the regulator’s website.
The latest development comes after the National Company Law Tribunal (NCLT) on May 8 issued a notice to the Ajay Singh-promoted private carrier on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against it. The tribunal is scheduled to hear the plea on May 17.
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