ISLAMABAD: A court in London has ordered India’s low-cost carrier SpiceJet to pay close to $8 million to an overseas aircraft engine lessor, in a ruling that underscores the airline’s deepening financial troubles and raises uncomfortable questions about corporate discipline in India’s aviation industry.

According to the draft report, London’s Commercial Court granted summary judgment in favour of Sunbird France 02 SAS over unpaid lease rentals and maintenance charges linked to three aircraft engines. The court found that SpiceJet “had no viable defence” in the case.

The dispute relates to engine lease payments overdue since January 2022 and maintenance charges dating back to November 2020. Default notices were issued in July 2022, with the engines subsequently repossessed between late 2022 and mid-2023.

Industry estimates cited in the draft place the award at $7,959,235, excluding interest and legal costs, meaning the final liability could increase further.

The ruling represents another setback for the cash-strapped airline, which has been grappling with mounting financial pressure. It also risks denting India’s efforts to position itself as a reliable destination for global investment.

While formally a commercial dispute, the optics of a prominent Indian airline being ordered by a foreign court to settle unpaid obligations are difficult to ignore.

The episode sharpens concerns about “financial discipline and contractual reliability” within segments of India’s corporate sector, as noted in the draft.

The case is further complicated by the airline’s conduct during proceedings.

According to the report, SpiceJet did not file a defense despite initially appointing legal representatives and did not respond to requests for comment following the judgment.

The airline remains under sustained strain from the long-term fallout of the Boeing 737 MAX grounding, the COVID-19 pandemic, and intensifying competition from newer entrants such as Akasa Air.

The ruling also revives broader concerns about SpiceJet’s solvency. Auditors have previously flagged doubts about the airline’s ability to continue as a going concern, citing persistent losses and a widening gap between liabilities and assets.

Taken together, the case adds to growing scrutiny of India’s private aviation sector—particularly around financial stability, debt obligations, and the enforcement of international contracts.

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India’s SpiceJet faces fresh blow in UK court