Fri Sep 20 09:01:44 UTC 2024: ## SpiceJet Ordered to Ground Three Engines Over Unpaid Dues

**New Delhi, India** – SpiceJet has been ordered by the Supreme Court to ground three engines leased from Team France 01 SAS and Sunbird France 02 SAS, following unpaid dues. The court upheld a Delhi High Court ruling, finding that SpiceJet had breached a consent order with the lessors despite multiple appearances in court and assurances of payment.

The airline had appealed the High Court order, arguing that they had already paid over $8 million and were in ongoing negotiations for a settlement in Singapore. They also requested time to properly ground the engines due to the requirement of specialized stands. However, the Supreme Court denied these requests, advising SpiceJet to address these concerns with the High Court.

The lessors, represented by lawyer Abhishek Manu Singhvi, stated that SpiceJet had repeatedly violated the consent order, which required the return of engines within 15 days of missed payments. They argued that SpiceJet’s financial situation was unreliable, citing repeated delays and failure to honor payments since December 2023.

SpiceJet, which operates a fleet of 21 aircraft, claimed that grounding the engines would lead to the grounding of two planes, disrupting its operations. Despite this, they stated in a statement that two of the three engines are already grounded and their operations remain unaffected.

The airline is currently facing severe financial strain, reporting a decline in profit for the June quarter and significant liabilities. They are also under enhanced surveillance by the Directorate General of Civil Aviation (DGCA) due to flight cancellations and financial difficulties.

SpiceJet is planning to raise ₹3,000 crore through a qualified institutional placement (QIP) by September 30, with ₹4.9 crore allocated to settle dues. However, the lessors have rejected this offer, citing concerns about the airline’s financial stability.

The grounding of the engines adds further pressure to SpiceJet’s already strained financial situation. The airline’s shares fell by 3.50% following the Supreme Court ruling.

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