SpiceJet sued in UK over unpaid dues worth Rs 200 crore: Report

Days after SpiceJet announced that it would operate non-stop flights to London from December 4, the airline is facing a lawsuit in the British capital over outstanding dues worth Rs 200 crore. BOC Aviation and Wilmington Trust Services, both based in Ireland, have reportedly filed a complaint with Property Courts at High Court in London.

As per a Mumbai Mirror report, complainants have claimed that SpiceJet has defaulted on rent and other charges as per the aircraft lease agreements. Several notices were sent to SpiceJet seeking payments, both told the court.

SpiceJet sought a month's time to file a reply but it was denied by the court. The airline has been given time until October 19, the report said.

The case pertains to three Boeing 737-800 aircraft leased from BOC Aviation in May 2019 and three Boeing 737-Max 8 aircraft leased from Wilmington Trust Services in Noc-December 2018.

While BOC Aviation is claiming Rs 48 crore outstanding dues, which includes rent as well as interest accruing on a daily basis, Wilmington Trust Services has said that SpiceJet has not paid monthly rent since April 2019 and dues amount to Rs 156 crore, including interest, the report said.

The newspaper contacted SpiceJet spokesperson but did not receive a response.

Moneycontrol could not independently verify the report.

It is worth noting that Boeing 737-MAX 8 aircraft has been grounded globally following two major aviation accidents, including the Ethiopian Airlines crash which claimed 157 lives. Aviation regulator DGCA grounded Boeing 737 Max 8 aircraft in India on March 13.

In India, SpiceJet was one of the biggest buyers of Boeing 737 Max 8 aircraft. The airline is expecting payment from Boeing to compensate some of the lost profit.

Meanwhile, SpiceJet will launch non-stop flights connecting Delhi and Mumbai with London’s Heathrow airport from December 4, becoming the third Indian airline, and the first low-cost carrier, to fly to the British capital.

These flights will operate under the air bubble agreement with UK, the airline said in a statement on October 5. "The airline will operate thrice-a-week to London including twice from Delhi and once-a-week from Mumbai," the airline said.