While Go First’s insolvency has been the subject of discussion for most of the month, apart from their lessors who have been fidgety, the lessors have also been getting jittery about another airline which has been financially challenged. They have moved along with getting some of their aircraft back from SpiceJet.
SpiceJet lessors move to deregister five aircraft.
SpiceJet lessors have moved forward to deregister five aircraft from the airline’s fleet and potentially even take them back. The following aircraft are under IDERA:
- Boeing 737-8 registered VT-MXX (CDB Aviation)
- Boeing 737-8 registered VT-MXH (CDB Aviation)
- Boeing 737-800 registered VT-SZJ (SMBC Aviation vide Goshawk Aviation)
- Boeing 737-8 registered VT-MXF (SMBC Aviation vide Goshawk Aviation)
- Boeing 737-8 registered VT-MXJ (SMBC Aviation vide Goshawk Aviation)
Incidentally, concerning the last three aircraft, SpiceJet was sued by Goshawk in US courts in 2022 about unpaid lease rentals and maintenance reserves. SpiceJet announced in August 2022 that they had reached a settlement with Goshawk, and all cases would be withdrawn in India and the USA against them. Of course, the lessor has gone a step further and requested that their planes be deregistered.
SpiceJet clarifies it is not going to head into insolvency.
Two of SpiceJet’s lessors AirCastle and Willis Leasing, have taken SpiceJet to the NCLT (India’s National Company Law Tribunal). However, SpiceJet has maintained that it will not be going for insolvency.
Spicejet has stated that it has initiated the process of reviving its grounded fleet with USD 50 million in funds received by the airline from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.
The airline on Thursday categorically stated that it has no plans to file for insolvency. The airline said it is firmly focused on its business and remains in active talks with investors to raise funds.
The CMD, Ajay Singh, said,
There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focussed firmly on reviving our grounded fleet and getting more and more planes back into the air. Work on this front has already begun and the Company is using the USD 50 million ECLGS funds and our own cash.
Last week, SpiceJet announced plans to revive 25 grounded aircraft to help it capitalise and make the most of the upcoming peak travel season.
SpiceJet lessors have been moving to get some of their aircraft (5) off the register of aircraft from SpiceJet, and SpiceJet insists that it will not go for the insolvency option. Instead, it will use the money it will raise from banks to get its aircraft ungrounded to capitalise on the upcoming peak travel season.
What do you make of SpiceJet’s intentions versus the intentions of its lessors?
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