SpiceJet, India’s low-cost airline, is currently facing a hefty $120 million lawsuit in the UK. The LAw Suit is filed by four aircraft leasing companies. These companies, all subsidiaries of the Industrial and Commercial Bank of China (ICBC), claim that SpiceJet has failed to meet financial obligations related to several leased aircraft.
The lawsuit involves the leasing of three Boeing 737-800 NG and four Boeing 737-8 MAX aircraft between 2012 and 2018. The claim revolves around missed rent payments, unpaid engine maintenance costs, and unrefunded security deposits. From March 2020 onwards, the airline allegedly stopped making monthly rent payments, a situation worsened by the COVID-19 pandemic, which had a massive impact on the global airline industry.
Boeing 737-800 NG rent: $695,000 per month
Boeing 737-8 MAX rent: $1.58 million per month
Total claim: $120 million
The leasing companies claim SpiceJet failed to pay basic rent. Infact did not top up security deposits, and failed to cover engine maintenance costs for several aircraft. In some instances, SpiceJet allegedly removed engines from two of the aircraft for maintenance. But did not pay the facilities in France and Malaysia. Additionally, two aircraft were allegedly returned early, resulting in lost rental income for the leasing firms, who had to sell them off to other operators.
SpiceJet has refrained from commenting on the lawsuit as it is still under legal review. The airline is being represented by the law firm King & Spalding International LLP. However, insiders have suggested that many of these kinds of lawsuits are settled out of court before a final ruling is made.
Despite this legal setback, SpiceJet’s financial health appears to be on the mend. For the fiscal year 2025, the airline reported a net profit of ₹48 crore, compared to a significant loss of ₹404 crore in the previous year. This marks the airline’s first full-year profit in the past seven years.
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This lawsuit highlights the fragile state of SpiceJet’s financial situation, especially as it grapples with post-Covid recovery. With multiple leasing claims already on the table, the outcome of this case could have long-term implications for the airline’s operations and future partnerships.
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