SpiceJet shares slide after Supreme Court directs airline to return three engines to lessors

The airline has been asked to ground and return the three engines within 15 days.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The Supreme Court has upheld a High Court order that directed SpiceJet to return three engines to lessors for non-payment of dues, and dismissed the airline's plea, instead asking them to independently negotiate with the lessors.

CNBC-TV18 reported that the airline has been asked to ground and return the three engines within 15 days. Shares of SpiceJet slipped to day's low, falling by over a percent after the news.

On August 14, a single judge High Court bench had passed the order, directing SpiceJet to return the planes to lessors after violating the undertaking to pay the lessors. Later, on September 11, a High Court Division Bench dismissed an appeal by the airline and upheld the direction issued to SpiceJet. The Supreme Court has upheld the order, asking them to negotiate with the lessors independently.

"SpiceJet is currently in discussions with the aircraft lessor to reach an amicable settlement. It is important to note that two of the three engines in question are already grounded, and our operations remain completely normal and unaffected. We remain committed to ensuring seamless operations," a SpiceJet spokesperson said.

The cash-strapped airline recently wrapped up a QIP issue to raise up to Rs 3,000 crore which it plans to use to settle with creditors, lessors, vendors and financiers. It was reported earlier that the QIP issue found backing from family offices of Madhu Kela, Akash Bhanshali, Sanjay Dangi, Rohit Kothari. There was no official comment from the airline regarding these reports.

Out of the total proceeds from the QIP, Rs 750 crore will be utilised for the payment of outstanding liabilities to creditors, including aircraft and engine lessors, engineering vendors and financiers, Rs 601.5 crore for the payment of statutory dues, and Rs 410 crore for ungrounding and maintaining existing fleet and for purchasing new components, spare parts, and repairs.

Another Rs 370 crore will be utilised for fleet expansion, while Rs 118.9 crore will be used for paying employee dues and Rs 150.3 crore for paying dues to airports, the airline said as part of its QIP document.